HP confounds analysts with quarterly sales upturn
PC surge mainly responsible; CEO Whitman points to IBM-Lenovo uncertainty
HP surprised analysts with a mild upturn in sales for its third fiscal quarter, instead of Wall Street's projected dip, Reuters reported.
PC revenue was up by 12%, but poor returns from other divisions dragged overall sales down to a growth figure of 1%. Quarterly revenue stood at $27.6bn, up from $27.2bn in the year-earlier period, while analysts had predicted $27.01bn.
Chief executive Meg Whitman is in the midst of a long-term turnaround plan that revolves around the former PC market leader shedding its reliance on PC sales. Whitman has long favoured a focus on enterprise business, such as servers, storage and infrastructure, which traditionally yields higher margins.
"It's a turnaround in a declining business," said Whitman. She highlighted a 9% surge in server sales, attributing the boon to jitters surrounding Lenovo's deal with IBM to buy the US giant's low-end server unit.
"We've been able to capitalize on that uncertainty and our win rates are up against IBM," Whitman said.