Hewlett Packard posts revenue drop in almost all segments

Technology giant Hewlett Packard (HP) posted weaker than expected fourth quarter results after the close of the markets on Tuesday.

The company’s revenues were lower across the board, except in its personal systems segment, which benefitted from a 7% rise in commercial revenue with notebook units increasing by 8%. That helped to offset a 2% drop in desktop units.

Adjusted earnings per share (EPS) of $1.06 were exactly as analysts had estimated, having risen by 5% versus the prior year.

During the reference period the firm registered $684m (36 cents) in after-tax costs related to restructuring charges, the amortization of intangible assets and acquisition-related charges which are not included in the above EPS figure.

However, the company's revenues 'missed', coming in at $28.4bn instead of the $28.7bn expected. That was a 2% reduction versus the same quarter of 2013. On a constant currency basis sales were down 3%.

On a full-year basis, net revenues were flat on a constant currency basis, at $111.5bn.

For the latest three months cash-flow from operations came off by 4% to reach $2.7bn, despite which the company’s net cash position registered a sequential improvement of $1bn to hit $5.9bn.

Looking out to the first quarter of the new financial year HP estimated that non-GAAP diluted net EPS would be in the range of $0.89 to $0.93, excluding approximately $0.17 per share, related primarily to the amortization of intangible assets and restructuring charges.

Shares of HP ended the after-hours session 1.28% lower at $37.15.