Hewlett-Packard Company (NYSE:HPQ) Turnaround On Track
Global technology leader, Hewlett-Packard Company (NYSE:HPQ)’s Board of Directors yesterday declared a regular cash dividend of $0.145 per share on the company’s stock. The dividend will be paid to shareholders of record as on December 11, 2013 and will be paid on January 2, 2014. With this announcement the technology giant will be paying the same dividend for the third consecutive quarter. Factoring the previous closing of $25.09 for Hewlett-Packard Company (NYSE:HPQ)’s common shares, the annualized dividend yield counts at 2.31%.
HP’s annualized dividend yield compares with that of International Business Machines Corp. (NYSE:IBM)’s 2.14% yield; Intel Corporation (NASDAQ:INTC)’s 3.81% yield and Microsoft Corporation (NASDAQ:MSFT)’s 3% yield.
4Q13 Earnings Highlights
Hewlett-Packard Company (NYSE:HPQ) reported gains of 180 bps and 400 bps of PC and printing shares for 4Q13 as compared to the same period of last fiscal. This revelations came in line with Gartner and IDC’s early estimate of HP’s increasing PC share in calendar third quarter.
The tech giant reported 2% revenue growth in its expansive enterprise group, supported by 3% growth in its networking business and about 10% increase in server sales. While enterprise group helped post marginal sales growth at $7.6 billion, sales from Hewlett-Packard Company (NYSE:HPQ)’s largest PC-focused unit declined by 2% to $8.58 billion and that of printing division’s sales declined by 1% to $6.04 billion.
HP’s operating margins were also get affected and slipped 9% in 4Q13 as compared to 10.4% in 4Q12, largely because of increasing competition in the industry offered by Lenovo Inc. and Dell Inc. which recently went private.
Hewlett-Packard Company (NYSE:HPQ) also reported $2 billion in free cash flow during 4Q13 compared to net income of $1.41 billion. R&D expenditure for 4Q13 also declined by 20% as compared to 4Q12 and is forecasted to remain higher throughout FY14.
The Elite Speak
Hewlett-Packard Company (NYSE:HPQ)’s Chief Executive Officer, Meg Whitman confirmed that company is eyeing to enter the emerging 3-D printing business and also made clear that they might not route it through merger and acquisition.