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HP revenues buoyed by resurgent PC sales

Meg Whitman: HP's CEO
Meg Whitman: HP's CEO

Computer maker HP saw a significant drop in its profits in its latest quarter earnings report, from $1.39 billion (about £830 million, AU$ 1.6 billion) to just under $1 billion (about £600 million, AU$ 1.15 billion).

While the 30% profit drop can best be described as brutal, it was what Wall Street was expecting, which explains why HP's shares fell by a mere 1%, still very near to its 52-week high.

Its revenue increased to $27.6 billion which means that the company should hit $110 billion for the whole financial year which is roughly what it did last year.

A long journey to recovery

But Whitman, the former eBay CEO and now in charge at HP, is doing so with a lot less employees. The company is on track to cut a whopping 50,000 people from its payroll and this usually is accompanied by associated HR-related costs.

The Personal Systems business unit was up 12% year on year with a 4% operating margin. The bump was fuelled by the amount of desktop PCs (up 13%) and laptops (up 18%) sold.

Printing revenues were down by 4% with a not-so-insignificant operating margin of 18.4% while Enterprise was a mix bag with Enterprise Group revenue up 2% while Software and Enterprise Services were down 5% and 6% respectively.