(By Balachander) Hewlett-Packard Co. (NYSE: HPQ), the world's largest seller of personal computers, posted better-than-expected earnings and revenue for the first quarter and offered an upbeat guidance. Shares rose 4.27 percent in extended trading on Thursday.
On a non-GAAP basis, earnings per share (EPS) fell 11 percent to $0.82 from $0.92 in the same period of last year, yet topped Wall Street projections of $0.71 for the first quarter.
GAAP earnings dropped 16 percent to $1.2 billion.
Revenue declined 6 percent to $28.4 billion, but less than consensus estimate of a 7.50 percent drop to $27.8 billion for the first quarter.
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Palo Alto, California-based HP's revenue has been falling for the past five quarters as dwindling sales of PCs coupled with a shortage of hard disk drives (HDD) taking a toll on its results. Meg Whitman, who was appointed as HP CEO in September 2011, has been making sweeping organizational changes in a bid to make HP a leaner and meaner company.
Results of HP, a Dow component, is closely watched to get a glimpse of PC market and enterprise spending by IT giants and government.
Segment wise, Personal Systems Group revenue declined 8 percent with desktop units rising 10 percent and notebook units falling 14 percent. Services revenue fell 7 percent. Printing revenue dropped 5 percent. Revenue at Enterprise Group declined 4 percent. Enterprise Services revenue fell 7 percent. Software revenue also dropped 2 percent.
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Looking ahead for the second quarter, HP forecasts non-GAAP EPS in the range of $0.80 to $0.82, topping analysts expectations of $0.77.
For the full year 2013, the company still expects non-GAAP EPS in the range of $3.40 to $3.60, while analysts expect $3.32.
Rival Dell Inc. (NASDAQ: DELL), which agreed to be taken private in a $24.4 billion deal, earlier this week reported a 31 percent drop in quarterly earnings due to lower revenue across its units and regions. Results, however, exceeded market expectations.
HP shares, which have been trading in a 52-week range of $11.35 to $29.22, ended Thursday's regular trading at $17.10.