HP Slips After Reporting Better-Than-Expected Fiscal Q3 Revenue

HP shares are off nearly 1 percent in after-hours trading despite posting better-than-expected fiscal third-quarter revenue and in-line earnings per share.

In its fiscal third quarter, HP had revenue of $27.585 billion, ahead of an expected tally of $27.01 billion. The company earned $0.89 per share on a non-GAAP basis, matching expectations precisely. On a GAAP basis, not excluding certain costs, HP’s profit was a more modest $0.52 per share.

The company’s revenue grew by 1 percent compared to its year-ago quarter. As CNBC noted following the release, it’s the company’s first period of yearly revenue growth in three years.

HP’s PC business had a very strong quarter, with its revenue rising 12 percent compared to the year-ago quarter. Unit volume was up 13 percent, while laptop sales up 18 percent in terms of unit volume.

Printing, Enterprise Services, Software, and HP Financial Services groups all saw their revenue decline. Aside from the PC business, HP’s other division to post positive year-over-year revenue growth was its Enterprise Group, which expanded 2 percent.

For recent historical perspective, the company beat in its first fiscal quarter of 2014, but missed in its second.

Why is HP down after hours? The company’s per-share profit, using generally accepted accounting principles, fell from $0.71 in the year-ago quarter. Restructuring charges, however, were material.

In the company’s earnings report, HP CEO Meg Whitman said that she is confident in the firm’s continued growth.