The tech giant reported first-quarter earnings of 92 cents per share on revenue of $30 billion. Wall Street analysts polled by Thomson Reuters had predicted earnings of 87 cents per share on revenue of $30.7 billion. HP also gave disappointing guidance for the second quarter, saying it sees operating earnings of 88 to 91 cents per share, below the 95 cents per share Wall Street had been expecting.
The company's revenue performance was mixed, with several segments down sharply. Personal Systems Group revenue fell 15% to $8.9 billion, Services revenue rose 1% year-over-year to $8.6 billion, while Imaging and Printing Group revenue declined 7% to $6.3 billion, and Enterprise Servers, Storage and Networking (ESSN) revenue declined 10% year-over-year to $5 billion. Software revenue was up 30% year-over-year to $946 million, thanks in part to HP's acquisition of Autonomy.On the conference call, HP blamed the macroeconomic environment, as well as the hard disk drive (HDD) shortage, caused by the flooding in Thailand. CEO Meg Whitman explained that, during the first quarter, industry supply of HDDs was about 30% below demand, prompting HP to focus more on profitability than market share. The former eBay (EBAY) chief also pointed to shortcomings in HP's supply chain, which need to be improved. "We were not as effective as we needed to be - it showed me that we have some challenges in our overall supply chain," she said. "I think that we're world class about how we buy components, but not world class about how we manage our supply chain." Specifcally, Whitman said that HP could do a better job of quickly getting products to market. HP shares closed the regular session down 1.4% to $28.94. Shares are down in extended-hours trading, off 1.35% to $28.55. -- Written by James Rogers and Chris Ciaccia in New York. >To follow the writers on Twitter, go to http://twitter.com/jamesjrogers and http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org.