Hewlett-Packard shares jump 7% on enterprise division profit

HP logo The once-mighty Hewlett Packard has struggled to keep up with changing customer tastes

Related Stories

The veteran computer firm Hewlett-Packard saw its shares jump 7% in after hours' trading on results that suggest its enterprise division will make up for falling PC sales.

HP's fourth-quarter revenue fell 3% to $29.1bn (£18bn), about half the size of the fall expected.

Revenue at the key enterprise group rose and income was $2bn.

The 70-year-old company has struggled to keep up with shifting consumer demand for smaller, portable devices.

Its Enterprise Group revenue was up 2% on the same period last year, with a 14.5% operating margin.

Chief executive Meg Whitman, who took over in 2011, said in a statement: "Through improved execution, strong cost management, and with the support of our customers and partners, HP ended fiscal 2013 on a high note."

She added that these results showed that HP's turnaround remained on track.

Previously Ms Whitman warned that the firm, which has been laying off tens of thousands of staff, was "unlikely" to see revenue growth next year.

Her comments came as the firm reported an 8% decline in revenue for the quarter ending 31 July, from a year ago.

HP was displaced by China's Lenovo as the world's top PC maker last year.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    ALIBABA SHARE SALE 06:20: Radio 5 live
    Alibaba head office, Hangzhou

    Alibaba has raised the price range of shares in its US stock market debut and could now raise $25bn (£15.4bn). The funds will allow the Chinese internet company "to make its mark" in the US market place says BBC Business presenter Rico Hizon on Wake Up to Money. Company executives are on an international road show to market the shares. Today there are in Singapore, tomorrow London.

     
  2.  
    SCOTTISH INDEPENDENCE 06:12: Radio 5 live
    Scottish flag

    The leaders of the three main parties at Westminster have signed a pledge to devolve more powers to Scotland, if Scots reject independence. On Wake Up to Money Colletta Smith, the Economics Correspondent for BBC Scotland says it amounts to an "agreement to make some kind of agreement". Details will have to be worked out after the vote, she says.

     
  3.  
    PHONES 4U COLLAPSE 06:02: Radio 5 live
    Phones 4U

    "I'm not surprised it fell over," says fund manager, George Godber in reference to the failure of Phones 4U over the weekend. On Wake Up to Money Mr Godber says the company did "not have any room for financial manouevre" because its private equity owners had recently loaded it with £250m in debt. Phones 4U founder John Caudwell will be on Radio 5 at around 08:45.

     
  4.  
    06:00: Matthew West Business Reporter

    Morning folks as always you can get in touch with us here at bizlivepage@bbc.co.uk and on twitter @bbcbusiness.

     
  5.  
    05:59: Ben Morris Business Reporter

    Good morning. It's shaping up to be a busy morning with inflation figures due at 09:30 and we'll see what John Caudwell has to say about the demise of the company he founded, Phones 4U. Stay with us.

     

Features

From BBC Capital

Programmes

  • Click reporter Jen Copestake looks at a smart mirrorClick Watch

    From the mirror offering beauty advice to next gen robot vacuums - the connected home of the future

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.