News Column

Hardware keeps HP growing in second quarter

August 21, 2014

MICHAEL BIRD



COMPUTER colossus Hewlett-Packard (HP) last night reported an uptick in revenues during the second quarter of the year, with demand for hardware helping to keep the company growing.


Net revenue rose by one per cent during the three month period, when compared to the same quarter last year, climbing to $27.6bn (16.63bn).


Demand for personal computer systems helped to boost the firm, with revenue in that department up by 12 per cent. Sales of notebooks were particularly strong, rising by nearly onefifth during the 12-month period. The results failed to boost the company's share price in after-hours trading, with a drop of nearly one per cent after the announcement, add-ing to a 1.01 per cent drop during the say, reducing shares to $35.12.


"I look at the way the business is performing, the pipeline of innovation and the daily feedback that I receive from our customers and partners, my confidence in the turnaround grows stronger," said chief executive Meg Whitman, adding that she was "very pleased with the prog-ress we've made".


The firm recorded a smaller boost in profits, with adjusted earnings rising to $1.698bn from $1.691bn dur-ing the same period in 2013.


HP also revised its earnings forecast for the current fiscal year, which ends this quarter. Previously, the company had expected profits of $3.63 to $3.75 per share, but narrowed their expectations on the upper end of the project, at between $3.70 and $3.74.


HP also announced that it has bought back shares and issued dividends to the tune of $881m during the three-month period.


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Source: City A.M. (UK)


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