Hewlett-Packard reports falling revenues despite rise in sales
Tech giants Hewlett-Packard have released their quarterly financial results. The company has seen a minor rise in sales with a 7% increase in the forth quarter. However, the net earnings for the company fall down by 62 percent. This was mostly due to expense of $1.1 billion on restructuring. Nevertheless, HP still managed to beat the market expectations.
All the major divisions of the company including personal computers and printers to enterprise servers, software, and services reported gains in sales. Hewlett Packard has also raised its earnings forecast for the first quarter. The shares of the company gained 6 percent, or $1.74, on news of the results in after-hours trading.
As per the reports released by the company, HP earned $416 million or 14 cents per share for the period ending October 31. This is quite a disappointment otherwise over profit of $1.091 billion, or 37 cents per share, in the same period last year. Sales however improved to $22.9 billion from $21.4 billion. Mark Hurd, HP’s CEO said in a statement: “HP delivered another strong quarterly performance, with balanced revenue growth, good cost discipline, improved margins in key businesses and strong cash flow.â€
He added: “We are pleased with our progress to date, but there is more work ahead of usâ€.