HP's Q3 Solid in the Wake of Hurd's Departure
HPs third quarter earnings may have been solid with server and PC sales boosting revenue and profits, but the company must now turn its focus to finding a new CEO. On the storage front, HP's Enterprise Storage and Servers (ESS) revenue came in at $4.4 billion, up 19 percent from a year ago and operating profit was $549 million, up from $381 million. Datamation has the story.
HP (NYSE: HPQ) reported its third quarter earnings today, but the news was overshadowed by larger concerns over the company's strategy in the wake of former CEO Mark Hurd's abrupt dismissal earlier this month as result of his filing bogus expense reports and his settlement of a sex harassment claim by a former contractor.
The computer giant's stock dropped more than 10 percent following Hurd's departure and has yet to recover.
On the bright side, HP reported revenue of $30.7 billion (up 11.4 percent from a year ago) and $3.4 billion in profits, beating the consensus forecast of analysts surveyed by Thomson Reuters who were expecting $30.46 billion in revenue.
Earnings came in at $1.08 a share (non-GAAP), matching estimates, and represents a jump from $0.92 from the year-ago quarter. HP had released preliminary results for the quarter earlier this month when it announced Hurd's resignation.
At the time of Hurd's dismissal, HP said its investigation showed the sexual harassment claim was unfounded, but the company said the false expense reports, which reportedly hid his relationship with the contractor, Jodie Fisher, were enough to send Hurd on his way with a multi-million dollar golden parachute.
Earlier today, HP announced it had hired the executive search firm Spencer Stuart to handle the CEO replacement effort that will include candidates from both inside and outside HP.
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