Dell wasn't the only struggling hardware giant to report better-than-expected earnings. PC giant Hewlett-Packard saw its shares surge after reporting smaller-than-expected revenue and profit declines on Thursday, and improving cash flow dynamics. All units of the company reported revenue declines, a signal of the work left in the company's turnaround. HP Investors Heave Sigh of Relief, but Challenges Remain HP reported first-quarter revenue of $28.4 billion, down from $30 billion a year earlier but above Wall Street's forecast of $27.79 billion. Excluding items, it earned 82 cents a share, down from 92 cents but well above the consensus estimate of 71 cents. Earnings also surpassed HP's forecast of 68 cents to 71 cents. For the second quarter, HP expects earnings, excluding items, of 80 cents to 82 cents a share. Analysts surveyed by Thomson Reuters were looking for earnings of 77 cents. The Palo Alto, Calif.-based firm predicts full-year earnings of $3.40 to $3.60 a share, well above Wall Street's estimate of $3.32. On an earnings call, CEO Meg Whitman was also quizzed about a possible breakup of HP, but she reiterated her aim to keep the company intact. "We have no plans to break up the company, and I have said many times that I feel we're greater and stronger together," she said in response to an analyst's question. "Importantly, customers want this company to be together." HP ( HPQ) shares gained 14% during the week's trading to close at $19.20 on Friday.
On Wednesday, Tesla reported a wider-than-expected loss that drove shares sharply lower for the week.Tesla reported a fourth-quarter non-GAAP loss of 65 cents a share on $306 million in revenue. Analysts polled by Thomson Reuters were looking for a loss of 53 cents a share on $298.2 million in revenue. Still, as Tesla rolls out its highly-anticipated Model S, CEO Elon Musk indicated strong sales figures could push the company to a profit in coming quarters. Demand is strong for the Model S, Musk said on the conference call. For the full year, Tesla expects to deliver about 20,000 Model S units, with 4,500 of them in the first quarter. Tesla expects first-quarter gross margins to be in the midteens and rise toward its target of 25% in the second half of the year. "We really have very high confidence that we will have a profitable first-quarter," Musk said. Tesla shares ended the week down 8.0% at $36.11. -- Written by Antoine Gara in New York. Follow @AntoineGara