Hewlett-Packard (HPQ) stepped on the gas last year. Its enhanced performance amid the quarter energized optimism about Hewlett-Packard’s late efforts to stage a turnaround. While revenue for the period was in front of analyst expectations at $29.1 billion, HP’s adjusted earnings were also superior to Street estimates at $1.01 per share.
Nonetheless, the general scenario continues to stay somber as HP’s top and bottom lines fell on a year-over-year basis by 3% and 13%, respectively. Likewise, CEO Meg Whitman rehashed her prior direction of declining revenue for the monetary year finishing 2014. Thus, it is clear that investors have offered up shares under the trust that HP will bounce back, however would they say they are right in supposing so? How about we attempt and discover.
Enterprise spending cues
The essential reason behind HP’s not too bad final quarter earnings was a 1.8% increase in revenue from the enterprise division that accounts for about 25% of general sales. Indeed, the results have been a complete turnaround, considering that HP’s enterprise division revenue really fell by as much as 9% amid the prior quarter, demonstrating that the organization may still have the capacity to rely on its corporate customers.
— Guru Focus