Hewlett-Packard’s profit exceeds analysts’ estimates
Hewlett-Packard Co. said that its fiscal second-quarter profit surpassed estimates of analysts. This is attributable to corporate spending on servers raised before the company prepared of partition into two companies.
The company said that profit was 87 cents a share in the period that ended in April before certain items. According to data compiled by Bloomberg, analysts approximately had estimated 86 cents a share. Hewlett-Packard also said that it may take charges of $3 billion associated with restructuring and the separation over three years.
Chief executive officer Meg Whitman said that they performed well in a tough market environment and some of their businesses did very well.
According to Jeffrey Fidacaro, an analyst at Monness Crespi Hardt & Co., who has a buy rating on the stock, HP is structured to do well across all lines and investors are concentrating to balance between the fundamentals and the separation.
It was announced by the company in October 2014 that it will divide into Hewlett-Packard Enterprise and HP Inc. by the end of this year. Whitman will lead the former and will concentrate on software, servers and the cloud.
As per Whitman, they are happy that they performed really well in the quarter and it is a part of their continued success in addition to the progress made by them for separation.
According to Whitman, “Despite some tough challenges, we executed well across many parts of our portfolio, sustained our commitment to innovation, and delivered the results we said we would. HP is becoming stronger as we head into the second half of our fiscal year and separation in November”.