HP issues upbeat guidance for 2014 (Update)

Oct 09, 2013

Hewlett-Packard is upbeat about 2014, saying it will be a year of "recovery and expansion."

The technology bellwether on Wednesday projected earnings for the fiscal year starting in November that exceeded analysts' forecasts and predicted "stabilizing revenue declines."

HP's stock rose 8.9 percent to close at $22.60. The shares have gained about 59 percent this year.

HP has been trying to ease the pain of a declining PC market by cutting costs and focusing on more profitable areas. Research firms IDC and Gartner Inc. also reaffirmed Wednesday that they believe the PC market will hit bottom this year or next before recovering. HP is the world's second largest maker of PCs.

In a presentation to analysts Wednesday, CEO Meg Whitman said the company will focus on new products and services next year while controlling costs under stable leadership. "While there is a lot more work to be done, I am confident about the progress we are making," Whitman said in a statement.

The Palo Alto, California, company expects net income, excluding one-time items, of $3.55 to $3.75 per share in the 2014 fiscal year. The midpoint is 3 cents higher than the $3.62 analysts polled by FactSet expected.

The company said it would also return at least half of its $6 billion to $6.5 billion in free cash flow next year to shareholders through dividends and stock repurchases, which boost earnings per share.

Explore further: Oracle 1Q profit rises 8 pct, tops predictions (Update)

5 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Hewlett-Packard turns 3Q profit but revenue falls

Aug 21, 2013

Hewlett-Packard made a profit in the latest quarter, reversing a huge loss a year ago that stemmed from an $8 billion charge. But the technology bellwether's revenue declined amid an ongoing weakness in the PC market.

Qualcomm 3Q results beat Wall Street estimates

Jul 20, 2011

(AP) -- Wireless chip-maker Qualcomm Inc.'s results for the latest quarter beat Wall Street's expectations, and its projections for the current quarter are also above analysts' estimates.

EBay 1Q revenue grows but falls below estimates

Apr 17, 2013

EBay grew its earnings and revenue in the first quarter thanks to growth in its PayPal business and its e-commerce sites. But revenue fell shy of Wall Street's expectations, causing investors to send the company's stock lower ...

Recommended for you

Telefonica ups bid to create Brazil's top operator

4 hours ago

Spain's telecommunications company Telefonica has raised its offer to buy Brazilian operator Global Village Telecom, or GVT, from French media conglomerate Vivendi to 7.45 billion euros ($9.82 billion) from 6.7 billion euros ...

Hackerspaces used to turn ideas turn into reality

Aug 27, 2014

At HeatSync Labs, the tables are littered with computer chips, pens, pads and tools while the room is abuzz with the chatter of would-be inventors hoping to change the world—or just make cool things. They are part of a ...

User comments : 0