Hewlett Packard (HPQ) is looking to a stronger year after revenue fell less than analysts expected in Q1 — prompting HP earnings outlooks to be raised.
The company posted revenue of $28.2 billion, down from $28.4 billion from a year prior.
The revenue gain beat analyst expectations of $27.2 billion.
HP has been working to reduce its reliance on personal computers and boost HP earnings by moving business toward computing and networking equipment for companies.
Giving investors something to smile about, HP increased the bottom end of its full-year earnings outlook at $3.60 to $3.75 compared to its previous $3.55 to $3.75.
Chief Executive Office Meg Whitman told analysts that the company saw corporations and agencies beginning to replace ageing computers in the quarter, while Microsoft’s decision to soon end support for its Windows XP operating system also prompted PC upgrades.
Business at its enterprise group, the lynchpin of HP’s strategy to transform itself into an IBM-like provider of enterprise computing services, edged 1 percent higher as server sales fared better than analysts had expected. Chief Executive Officer Meg Whitman said growth in revenue and operating margins in that crucial division was “possible,” provided demand from enterprises holds up.
Whitman has said repeatedly that she expects HP to stabilize this year, with earnings to rebound.
HPQ stock is up 1% pre-market today.
