Last Updated Aug 19, 2010 7:21 PM EDT
That's what HP did, so today's official earnings report was largely an anticlimax -- any corporation that couldn't meet the guidance it gave a week before would be in pretty sad shape. Quarter revenue was up 11.4 percent year-over-year, with operating profit up 5 percent. However, there are some interesting details.
Notice the big difference between the revenue and operating profit increases. Clearly there were some significant inefficiencies and expenses creeping in. HP did report non-GAAP numbers as well as GAAP, "related primarily to the amortization of purchased intangibles, restructuring charges and acquisitionâˆ'related charges." But given that HP does period acquisitions, including intangibles, as well as cost cutting, including the 9,000 job cuts it announced in early June, I'd tend to look at the company through the GAAP lenses. If managers want to use non-GAAP, it seems reasonable to consider them only when there is a once-in-a-blue-moon event. But the company laid off 24,600 after acquiring EDS, and it also instituted the unpopular mandatory pay cuts on all, though still managed to leave upper management effectively untouched. Hardly anything new about things today.
More intriguing from the view of analyzing the company is where revenue increased:
- Enterprise Storage and Servers, up 19 percent
- Personal Systems Group (PCs), up 12 percent
- Services, up 1 percent
- Software, up 2 percent
- Imaging and Printing, up 9 percent
- Financial Services, up 14 percent
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