By Shira Ovide
Hewlett-Packard Co. said its profit fell 6% for the October
quarter and the computer maker recorded another period of lower
revenue as it continues to show the frailties that prompted its
plan to split in two.
The Silicon Valley giant said revenue for its fourth quarter
ended Oct. 31 fell 2% to $28.41 billion. The average estimate of
Wall Street analysts called for a 1% decline to $28.76 billion,
according to Thomson Reuters.
H-P unveiled plans last month to break up the company on the
hopes two more nimble firms would be more capable of adapting to
tech-industry changes. One of the reconstituted H-P companies would
consist of its PC and printer businesses, the other of its
hardware, software, consulting services and other product lines
aimed at corporate buyers. The breakup is expected to be completed
by October.
Tuesday's financial report underscores the revenue-growth
problems that have dogged Meg Whitman since she took over as H-P's
CEO three years ago.
Overall for the fourth quarter, H-P reported a profit of $1.33
billion, or 70 cents a share, down from $1.41 billion, or 73 cents
a share, a year earlier.
Excluding restructuring charges and other items, the profit was
$1.06 a share. The company previously projected $1.03 to $1.07 a
share.
H-P said revenue for its enterprise group, which sells computer
servers and other hardware to companies, fell to $7.27 billion. Ms.
Whitman is slated to run the independent enterprise group, to be
called Hewlett-Packard Enterprise.
Revenue in H-P's PC-and-printer unit rose to $14.69 billion.
Those businesses will form the new HP Inc. when the company's
breakup is completed.
Looking to the current quarter, the company sees a profit of 89
cents to 93 cents a share, compared with analysts' call for 93
cents. The company affirmed its earnings guidance for the recently
started year.
Write to Shira Ovide at shira.ovide@wsj.com
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