Hewlett-Packard Earnings Drop 19%

Hewlett Packard (NYSE:HPQ) today announced financial results for its third-quarter ended July 31.

The company’s quarterly profit fell 19% to $1.64 billion, or 67 cents a share, on revenue of $27.5 billion – topping analysts’ forecasts of $27.3 billion – down from $2.03 billion, or 80 cents a share, a year ago. Results included a charge of 24 cents per share for ongoing restructuring and acquisition-related charges, including previously announced job cuts.

Without the charge, HP said it earned $2.2 billion, or 91 cents per share, up from $0.86 in the prior-year period, and a penny better than the average estimate of analysts polled by Thomson Reuters (NYSE:TRI).

“HP’s performance this quarter is a result of our strong business portfolio, efficient cost structure and scale. We made positive gains in extending our market leadership in key segments and strengthening our competitive position,” said Mark Hurd, HP chairman and CEO. “Business is stabilizing, and we are confident that HP will be an early beneficiary of an economic turnaround and will continue to outperform when conditions improve.”

Palo Alto, Calif.-based HP also said in its reports that cash flow from operations came in at $3.9 billion, up 15% on a y/y basis.

For its fourth-quarter, HP expects to earn 97 cents a share on a GAAP basis, or $1.12 a share excluding one-time items. The co. also sees the  revenue to be up approx. 8% sequentially.

For the full fiscal year 2009, HP expects revenue and earnings to be in-line with the mid-point of the outlook range provided on May 19, 2009.

HPQ shares closed at $43.96 on the NYSE, but fell $0.40 to $43.56 in extended trading.

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