Hewlett Packard Company (HPQ) has reported 62.81 percent plunge in profit for the quarter ended Oct. 31, 2016. The company has earned $492 million, or $0.28 a share in the quarter, compared with $1,323 million, or $0.73 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $614 million, or $0.36 a share compared with $548 million or $0.30 a share, a year ago. Revenue during the quarter went up marginally by 2.01 percent to $12,512 million from $12,266 million in the previous year period. Gross margin for the quarter contracted 98 basis points over the previous year period to 18.31 percent. Total expenses were 94.70 percent of quarterly revenues, up from 93.49 percent for the same period last year. That has resulted in a contraction of 121 basis points in operating margin to 5.30 percent.
Operating income for the quarter was $663 million, compared with $798 million in the previous year period.
“We delivered on our full year financial commitments and executed well on our strategy to protect our core, drive growth and invest in our future all while taking cost out of the business” said Dion Weisler, President and Chief executive officer, HP Inc. “As we’ve proved quarter over quarter, we are confident in our abilities to execute and deliver, while making business decisions focused on the long-term success for the company."
The company forecasts diluted earnings per share to be in the range of $0.33 to $0.36 for the first-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.47 to $1.57. For fiscal year 2017, the company expects diluted earnings per share to be $0.08 on adjusted basis. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.35 to $0.38 for the first-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.55 to $1.65 on adjusted basis.
Operating cash flow drops significantly
Hewlett Packard Company has generated cash of $3,230 million from operating activities during the year, down 50.23 percent or $3,260 million, when compared with the last year. Cash flow from investing activities was $48 million from investing activities during the year as against cash outgo of $5,534 million in the last year. It has incurred net capital expenditure of $427 million on net basis during the year, down 86.57 percent or $2,752 million from year ago.
The company has spent $14,423 million cash to carry out financing activities during the year as against cash inflow of $1,344 million in the last year period.
Cash and cash equivalents stood at $6,288 million as on Oct. 31, 2016, down 17.09 percent or $1,296 million from $7,584 million on Oct. 31, 2015.
Working capital turns negative
Working capital of Hewlett Packard Company has turned negative to $340 million on Oct. 31, 2016 from positive $9,596 million on Oct. 31, 2015. Current ratio was at 0.98 as on Oct. 31, 2016, down from 1.23 on Oct. 31, 2015.
Cash conversion cycle (CCC) has increased to 15 days for the quarter from 9 days for the last year period. Days sales outstanding went down to 15 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding was almost stable at 20 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 50 days for the quarter from 47 for the same period last year.
Debt comes down
Hewlett Packard Company has recorded a decline in total debt over the last one year. It stood at $6,836 million as on Oct. 31, 2016, down 22.94 percent or $2,035 million from $8,871 million on Oct. 31, 2015. Total debt was 23.56 percent of total assets as on Oct. 31, 2016, compared with 8.30 percent on Oct. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
