Hewlett-Packard today reported higher profits, despite lower revenue, in its fiscal fourth quarter ended Oct. 31.
HP (NYSE:HPQ) reported GAAP net income of US$2.8 billion or $1.14 a share on revenue of $30.8 billion, compared to net income of $2.6 billion or $1.08 a share on revenue of $33.6 billion in the same three months of 2008.
Analysts surveyed by Thomson Reuters estimated that HP would make $1.13 a share on revenue of $30.36 billion.
HP cited the following as some of the reasons for the higher profits: A 20 percent increase in business in China; a 5 point increase in profit margins from its services business (to enterprises) and a “significant” increase in bookings; and holding the number one spot in enterprise personal computer sales.
“HP’s solid performance in Services drove record profit, and the accelerated pace in signings creates strong momentum going into 2010,” said Mark Hurd, chairman and chief executive officer of HP, in a prepared statement. “Our operational execution and improving cost structure generated strong quarterly and year-end results.”
For all of fiscal 2009, HP posted net income of $9.4 billion, or $3.85 a share, on a 3 percent drop in revenue to $114.6 billion, versus net income of $9.3 billion, or $3.62 a share, on revenue of $118.4 billion in fiscal 2008.
HP’s Personal Systems Group, that sells desktop and notebook computers and other products to gadget consumers like you, reported an overall increase in fourth quarter unit sales of 8 percent worldwide but a decline in revenue of 12 percent to $9.9 billion. Notebook sales revenue fell 8 percent, due to price pressure and the launch of new netbook computer models. Netbooks are slimmed downed, decontented and discounted versions of traditional notebook computers. Desktop computer revenue was down 16 percent from the year ago quarter.
Operating profit for the Personal Systems Group was $460 million, or 4.7 percent of revenue, down from $616 million, or 5.5 percent of revenue, in the year ago quarter.
For the first fiscal quarter of 2010, the current quarter, HP estimates revenue of between $29.6 billion and $29.9 billion, and earnings per share in the range of $0.90 to $0.92.
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