Cost cuts spur Hewlett’s earnings

Article Excerpt

HEWLETT-PACKARD CO. $30 (New York symbol HPQ; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.9 billion; Market cap: $57.0 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.9%; TSINetwork Rating: Average; www.hp.com) is starting to benefit from a major restructuring that includes merging its computer and printing divisions and cutting 11% of its workforce. In its fiscal 2014 first quarter, which ended January 31, 2014, earnings before unusual items rose 8.5%, to $1.7 billion from $1.6 billion a year earlier. Earnings per share rose 9.8%, to $0.90 from $0.82, on fewer shares outstanding. Revenue in the quarter fell 0.7%, to $28.2 billion from $28.4 billion. Sales of computers rose 4% during the busy Christmas shopping season. However, printer sales fell 2%. Sales of servers and software to businesses also declined. Hewlett-Packard is still a hold. hold…