Hewlett Packard posts revenue drop in almost all segments

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.