Hewlett-Packard Company (NYSE:HPQ) announced its third quarter 2012 (ended July 31st) results after hours yesterday. Revenues fell 5% and non-GAAP diluted earnings per share were down 9% from the prior year. HP reported a GAAP (loss) diluted EPS of ($4.49) compared to a GAAP diluted EPS of $0.93 in the prior year quarter. The large loss in Q3 2012 reflected after-tax costs of $10.8 billion ($5.49 per share) related to the write-off of a major business unit and a restructuring announced in May; along with write-offs of various intangible assets, and other charges.
HPQ was down over 5% ($19.20 to $18.17) in after-hours trading on Wednesday.
HP is currently the world’s largest PC maker and also well known for its printers. As with Dell, which we reported on yesterday, HP is suffering from weak PC sales and overall economic conditions. Also in common with Dell, HP has been moving more into areas such as enterprise services and software to reduce its dependence on PCs. Neither HP or Dell seem to be able to compete successfully in the mobile or tablet business so far.
On the bright side, HP reports that it returned $625 million to shareholders in the form of dividends and share repurchases; and top management expresses confidence in the company’s ability to successfully restructure and get through these challenging economic times.