(RTTNews) - Hewlett-Packard Co. (HPQ: News ) said Thursday after the markets closed that its third quarter profit rose a modest 6% from last year, as an 11% revenue growth due to strength in its server, PC and printer businesses was dented by higher costs and expenses.
The Palo, Alto, California-based company reported GAAP net income for the third quarter of $1.8 billion or $0.75 per share, compared to $1.7 billion or $0.69 per share for the year-ago quarter.
Excluding amortization of purchased intangibles, restructuring charges and other items, non-GAAP net income for the third quarter was $2.6 billion or $1.08 per share, compared to $2.2 billion or $0.92 per share in the prior year quarter.
On average, 30 analysts polled by Thomson Reuters expected the company to earn $1.08 per share for the third quarter. Analysts’ estimates typically exclude special items.
GAAP operating margin for the third quarter decreased to 7.6% from 8.0% a year ago, while non-GAAP operating margin improved to 11.2% from 10.9% last year.
HP which is the world’s largest technology company, said net revenue for the third quarter rose 11% to $30.73 billion from $27.59 billion in the same quarter last year. Twenty-seven analysts had a consensus revenue estimate of $30.43 billion for the third quarter.
HP’s final third quarter results matched with its preliminary results revealed on August 6 while announcing the sudden and surprise resignation of Chairman, Chief Executive Officer and President Mark Hurd following an investigation of sexual harassment allegations against Hurd and the the company by a former HP contractor.
Hurd, who was at the helm of HP for 5 years, pushed the company beyond personal computers into more profitable areas such as outsourcing and computer networking. He directed more than $20 billion in acquisitions, and arranged severe cost cutting, including about 50,000 job cuts. Since Hurd’s forced resignation, the company’s market value has fallen by about $12 billion.
Third quarter revenue in the Americas rose 12% year-over-year to $14.2 billion, while revenue in Europe, the Middle East and Africa increased 9% to $10.9 billion and Asia Pacific revenue jumped 14% to $5.6 billion.
Third quarter revenue from the company’s international business constituted 63% of the total revenue. Revenue from the so-called emerging markets of Brazil, Russia, India and China increased 21% over the prior year period and accounted for 11% of total revenue.
Third quarter revenue from HP’s Personal Systems Group rose 17% year-over-year to $9.9 billion, with unit shipments up 12%. Notebook revenue for the quarter increased 10%, while Desktop revenue jumped 27%. HP continues to be the world’s largest PC maker. It had taken the world PC lead from Dell in 2006.
Via: rttnews.com