HP's financial woes have continued for a yet another quarter. In a release mistakenly delivered before Wall Street's closing bell, the company posted second quarter net revenue of $27.3 billion, down one percent from the prior-year period. As a result, HP's austerity measures aren't complete -- HP is planning to shed between 11,000 and 16,000 jobs, scattered worldwide around the company.
Second quarter net earnings per share (EPS) was $0.66, up from $0.55 in the prior-year period and within its previously provided outlook of $0.62 to $0.66, but lower than the numbers Wall Street was looking for.
Personal Systems revenue was up seven percent year over year with a 3.5 percent operating margin. Commercial revenue increased 12 percent and Consumer revenue declined two percent. Total units were up 10 percent with both Desktops and Notebooks units up six percent.
Printing revenue was down four percent year over year with a 19.5 percent operating margin. Total hardware units were up one percent with Commercial hardware units up three percent and Consumer hardware units flat. Supplies revenue was down six percent.
Enterprise Group revenue was down two percent year over year with a 14.4 percent operating margin. Industry Standard Servers revenue was up one percent, Storage revenue was down six percent, Business Critical Systems revenue was down 14 percent, Networking revenue was up six percent and Technology Services revenue was down five percent.
Enterprise Services revenue was down seven percent year over year with a 2.5 percent operating margin. Application and Business Services revenue was down eight percent, and Infrastructure Technology Outsourcing revenue declined seven percent.
HP generated $3.0 billion in cash flow from operations in the second quarter, down 16 percent from the prior-year period. HP also utilized $831 million of cash during the quarter to repurchase approximately 26.7 million shares of common stock in the open market. HP exited the quarter with $15.4 billion in gross cash.
For the fiscal 2014 third quarter, HP estimates net EPS to be in the range of $0.59 to $0.63, lower than the last quarter.