HP released financial results for its second fiscal quarter ended April 30, 2013. Second quarter earnings per share (EPS) was 55 cents, down from 80 cents in the prior-year period, higher than its outlook of 38 cents to 40 cents per share. For the second quarter, net revenues of $27.6 billion was down 10% year over year.
Meg Whitman (CEO, HP): I am encouraged by our performance in the second quarter, and I feel good about the rest of the year. As I have said many times before, this is a multi-year journey.
HP – Second Quarter Fiscal 2013 Segment Results
Personal Systems revenue was down 20% year over year with a 3.2% operating margin. Commercial revenue decreased 14%, and Consumer revenue declined 29%. Total units were down 21% with Desktops units down 18% and Notebooks units down 24%.
Printing revenue declined 1% year over year with a operating margin of 15.8%. Total hardware units were down 11% year over year. Commercial hardware units were down 5% year over year, and Consumer hardware units were down 13% year over year.
Enterprise Group revenue declined 10% year over year with a 15.9% operating margin. Networking revenue was up 1%, Industry Standard Servers revenue was down 12%, Business Critical Systems revenue was down 37%, Storage revenue was down 13% and Technology Services revenue was down 3% year over year.
Enterprise Services revenue declined 8% year over year with a 2.6% operating margin. Application and Business Services revenue was down 10% year over year, and IT Outsourcing revenue declined 6% year over year.
Software revenue was down 3% year over year with a 19.1% operating margin. Support revenue was up 12% while license revenue was down 23% and services revenue was down 5% year over year.
HP Financial Services revenue was down 9% year over year with a 3% decrease in net portfolio assets and a 24% decrease in financing volume. The business delivered an operating margin of 11.0%.
Asset Management
HP generated $3.6 billion in cash flow from operations in the second quarter, up 44% from the prior-year period. HP exited the quarter with $13.6 billion in gross cash.
Dividend
HP has declared a regular cash dividend of 14.52 cents per share on the company’s common stock, which reflects a 10% increase in amount compared to the previous quarterly dividend amount. The dividend, the third in HP’s fiscal year 2013, is payable on July 3, 2013, to stockholders of record as of the close of business on June 12, 2013.
Outlook
For the third quarter of fiscal 2013, HP estimates EPS to be in the range of 56 cents to 59 cents. For the full year fiscal 2013, HP estimates EPS to be in the range of $2.50 to $2.60.