NEW YORK (TheStreet) - HP's (HPQ) fourth-quarter earnings results came in as expected, but trouble with the quarter's top line has some analysts wondering if CEO Meg Whitman and the executive team are too focused on the company's planned split and not enough on its core businesses.
Watch the video below for a look at HP's latest quarterly results:
HP reported after the bell on Tuesday adjusted earnings of $1.06 a share. The company had previously forecast the quarter's earnings per share between $1.03 and $1.07. The company earned $1.01 a share in last year's quarter. Earnings on a GAAP basis came in at 70 cents a share versus HP's forecast of 67 cents to 71 cents a share.
Revenue fell 2% compared to the prior year's quarter to $28.4 billion, whereas analysts had expected revenue of $28.76 billion. HP reaffirmed its non-GAAP earnings forecast for 2015 of $3.83-$4.03 a share. It expects first-quarter non-GAAP earnings between 89 cents and 93 cents a share. Consensus estimates called for earnings of 92 cents a share for the first quarter.
Shares were trading up 2.5% to $38.57 on Wednesday. Here's what analysts said.
Ben Reitzes, Barclays (Overweight, $44 PT)
"We believe the in-line quarter and maintained FY15 outlook are enough into the much-anticipated split of the company in about 10 months. So far, the tone seems confident and disruption has been minimal - while margins are improving in services, the most troubled segment. Though revenues need to come down a bit due to currency, we believe each business is showing some gross margin progress. With the buyback picking up and the model basically intact, we see room for further appreciation in the shares due to valuation. We maintain our OW rating and price target of $44 based on our SOTP analysis."