Tomahawk, WI 05/24/2014 (Basicsmedia) – Hewlett-Packard Company (NYSE:HPQ) reported its second quarter results of FY2014 ended April 30, 2014 with diluted EPS of $0.66 on reported net earnings of $1.3 billion. The Company’s earnings were within the guidance of $0.62 to $0.66.

Sustains operating margin

Net revenues during the period remained flat on a constant currency at $27.3 billion due to mixed trend across its business segment. The Printing and Personal Systems group, which represented 51% of total revenue during 2Q2014, were up by 2% YoY due to increase in Personal Systems (+7%) that offset the declining revenue from Printing (-4%). It increased the Group’s operating margin by 1.3 pts to 10.2%.

But, Enterprise Group revenue was down by 2% YoY due to decreased revenue from Critical Systems, storage, and networking. In addition, the declining enterprise application further reduced the revenue for its Enterprise Services (-7%).

Therefore, total segments operating margin improved marginally (0.3 pts) to 9.6%. But, adjusted (non-GAPP) operating margin remained flat at 8.6% and consequently, it improved the adjusted diluted EPS $0.88 versus $0.87 in 2Q2013.

Generates positive cash inflows

Hewlett-Packard Company (NYSE:HPQ) generated lower cash inflows of $3.0 billion from operations compared to prior year period. HP also utilized $840 million as capital expenditures, paid $2.1 billion for outstanding debt and returned $1.1 billion to shareholders including $831 million in share repurchases and $298 million as dividend. As a result, HP ended up with gross cash of $15.4 billion as of April 30, 2014.

FY2014 outlook

Hewlett-Packard Company (NYSE:HPQ) continues to focus on growing opportunities for technology and will deliver solutions with a wide range of portfolio including personal systems, printing, software, services and IT infrastructure.

The trend expects to continue especially from APAC and EMEA regions in the forthcoming quarters, and accordingly, Hewlett-Packard Company (NYSE:HPQ) estimates the adjusted diluted EPS of at a range of $0.86 to $0.90 in third quarter 2014 and $3.63 to $3.75 in FY2014.

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