Net revenue down one percent year-on-year as OEM announces further 11,000 to 16,000 job cuts.
HP has released its second quarter results, with net revenue falling one percent to $27.3 billion (€20 billion) – slightly below the $27.43 billion (€20.14 billion) analysts expected. GAAP diluted net earnings per share of $0.66 (€0.48) were reported – a 20 percent increase year-on-year from $0.55 (€0.40) – while non-GAAP diluted earnings per share were up one percent year-on-year at $0.88 (€0.65) from $0.87 (€0.64).
Cash flow from operations for the quarter was reported to total $3 billion (€2.2 billion), with the OEM also announcing it had improved operating company net cash by $1 billion (€734,000), which it said marks the ninth consecutive quarterly improvement of “approximately $1 billion or more”.
The company added that it had returned $1.1 billion (€807,500) to shareholders during the quarter “in the form of dividends and share repurchases”, and that it expects adjusted earnings of 86 cents (€0.63) to 90 cents (€0.66) per share in the current quarter, with full-year adjusted earnings estimated as between $3.63 (€2.67) and $3.75 (€2.75) per share.
Meanwhile, KBOI2.com reported that the OEM has also announced plans to cut another 11,000 to 16,000 jobs on top of its previous target of 34,000 job cuts, as part of its multi-year restructuring plan.
The company reportedly stated that the further job losses come “as HP continues to re-engineer the workforce to be more competitive and meet its objectives”; with CEO Meg Whitman asserting that the company’s turnaround “remains on track” as HP is shaped “into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete”.