Hewlett-Packard jumped in early market trading on the back of an upbeat second-quarter earnings report. The computer giant posted a profit of 87 cents per share, with analysts estimating a gain of only 81 cents per share. However, while the bottom-line numbers looked good, the top-line figures did not, with Borchardt noting, "revenue missed by a whopping 10%."
Although that's usually a bad sign, investors did like that management raised its full-year outlook on the heels of cost cuts. Borchardt was quick to point out that guidance was still within the range that was provided earlier this year.
Management added that the company would also see some extraordinary cash expenses from tax maneuvers and restructuring payments in the second half of 2013. However, the company did note that they were focusing more on corporate services than the personal PC market, with that market slumping 20% year over year.While the earnings report was a mixed bag, the price action clearly indicates that investors are buying into the turnaround story and believe in CEO Meg Whitman.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts