HP FY Q2 Revs, EPS Edge Estimates; Boosts Full-Year Guidance

Hewlett-Packard (HPQ) reported slightly better-than-expected results for FY Q2 ended April 30.

The computing giant posted revenue of $30.8 billion, up 13% from a year ago, and ahead of the Street at $29.8 billion. Non-GAAP EPS was $1.09 a share, ahead of the Street at $1.05. Non-GAP operating margin expanded to 11.2%, from 10.4% a year ago. CEO Mark Hurd said in a statement that the company had “an exceptional quarter with strong performance across every region.”

Revenue was up 11% in the Americas, 11% in EMEA and 19% in Asia-Pacific. Adjusted for currency, revenue was up 9% in the Americas, 7% in EMEA and 10% in Asia Pacific.

Services revenue grew 2%; enterprise storage and servers jumped 31%, driven by a 54% rise in industry standard servers. Software was down 1%. Personal Systems Group – the PC business – posted a 20% increase in units and a 21% rise in revenue. Notebook revenue was up 17%, while desktop was up 27%.

Imaging and printing group revenue was up 8%, with supplies up 6%, commercial hardware up 13%, and consumer hardware up 16%. Printer units were up 9%.

Financial services revenue was up 18%.

For Q3, the company sees revenue of $29.7 billion to $30 billion, with non-GAAP EPS of $1.05-1.07; the Street consensus has been $29.7 billion and $1.07.

For the full year, the company is projecting 8%-9% revenue growth; the company lifted its non-GAAP EPS forecast to a range of $4.45 to $4.50, from $4.37 to $4.44.

In late trading, HPQ is up 79 cents, or 1.7%, to $47.58.

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