HP's Q3: PCs, Servers, Networking Business Going Strong


Strong PC and server sales and a bump in networking sales helped give Hewlett-Packard the push it needed to see a rise in fiscal third-quarter 2014 revenue over last year.

HP Chairman, President, and CEO Meg Whitman said during the Wednesday financial analyst conference call following the release of the quarter's results that HP is proving it is moving in the right direction.

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"We've seen the results of our efforts to get our PC and server business back on track," Whitman said.

Whitman also said that she remains confident in HP's future growth. "HP is quicker to recognize changes in markets, and responding faster than ever before," she said.

Even so, the quarter proved to be a bit tough for the Palo Alto, Calif.-based company. It reported revenue for its third fiscal 2014 quarter, which ended July 31, of $27.6 billion, up only 1 percent compared with its reported revenue for the third quarter of 2013.

HP reported GAAP earnings of $1.0 billion, down 29 percent compared with last year's $1.4 billion. HP also reported GAAP earnings of 52 cents per share, down 27 percent from the 71 cents per share it reported last year.

Non-GAAP earnings were reported as $1.70 billion, or essentially flat over last year's $1.68 billion. That worked out to be 89 cents per share, up 3 percent over last year's 86 cents per share.

HP's share prices, which fell about 1.0 percent to $35.12 before the close of the trading day Wednesday, dropped another 0.7 percent a couple of hours after the close of trade.

HP's overall PC revenue rose 12 percent over last year to reach $8.6 billion, with notebook revenue up 17 percent and desktop and workstation revenue rising 8 percent.

The migration from Windows XP was a big driver for HP's PC business in the third quarter, but its main impact has already been felt, Whitman said. "We believe that we are continuing to gain market share," she said.

NEXT: HP's PC, Printers, Servers And Storage Business