Despite a year that has been marred with disappointment and controversy for Hewlett Packard, the company managed to beat analysts’ expectations with its fourth-quarter earnings while seeing profits fall by 91%.
HP reported a fourth quarter profit of $239 million, or 12 cents a share, on revenue of $32.1 billion. In comparison, their Q4 earnings report saw a profit of $2.5 billion, or $1.10 a share, on revenue of $33.3 billion.
“While FY11 proved to be a challenging year, we grew non-GAAP earnings per share at 7% and generated $12.6 billion in cash flow from operations,” said Cathie Lesjak, HP executive vice president and chief financial officer in a press release. “We’re remaining cautious heading into 2012 but are focused on delivering our earnings outlook and driving shareholder value.”
“We need to get back to the business fundamentals in fiscal 2012, including making prudent investments in the business and driving more consistent execution,” chief executive officer Meg Whitman said in a statement.
Ms. Whitman was installed as CEO after the board of directors passed a motion to fire former CEO Leo Apotheker. The 11 month Apotheker regime was one marked in controversy, most notably the botched decision, which was quickly abandoned, to ‘spin-off’ HP’s PC division. During Mr. Apotheker’s tenure at the company, the value of HP’s stock dropped nearly 40%.
HP shares rose 48 cents, to $27.95 in extended trading, after the results were released.
Tags: Hewlett Packard