Hewlett-Packard Misses Q1 Revenue Expectations, U.S. Dollar Has 'Significant Impact' On Outlook

Hewlett-Packard Company HPQ announced financial results Tuesday for its fiscal 2015 first quarter ended January 31, 2015.

Revenue came in at $26.8 billion, below estimates of $27.34 billion and the $28.2 billion reported in the prior year period.

Non-GAAP EPS was $0.92, $0.01 above expectations and above the $0.90 reported in the first quarter of fiscal 2014.

GAAP diluted net earnings per share were $0.73, down 1 percent from the prior year period.

Cash flow from operations was $744 million, down 75 percent from the year-ago period.

The company also returned $1.9 billion to shareholders in the form of share repurchases and dividends in the first quarter.

CEO Meg Whitman said, "With the first quarter of fiscal 2015 now behind us, the HP turnaround remains on track. We grew operating profit margins across all of our major business segments, increased investment in innovation, and executed well across key areas of our portfolio and in our separation activities. Our progress continues as we head into Q2."

For its outlook, the company noted that the strengthening U.S. dollar was expected to have a “significant impact.”

For fiscal 2015 Q2, Hewlett-Packard estimated non-GAAP diluted net EPS to be in the range of $0.84 to $0.88, which reflected an estimated currency impact of $0.09. Analysts had expected EPS of $0.96.

Fiscal 2015 Q2 non-GAAP diluted net EPS estimates excluded after-tax costs of approximately $0.27 per share, related to separation costs, the amortization of intangible assets, restructuring charges and acquisition-related charges.

For the full fiscal year of 2015, the company estimated non-GAAP diluted net EPS to be in the range of $3.53 to $3.73, which reflected an estimated currency impact of $0.30. Analysts expected EPS of $3.95.

Fiscal 2015 non-GAAP diluted net EPS estimates excluded after-tax costs of approximately $1.50 per share, related to separation costs, the amortization of intangible assets, restructuring charges and acquisition-related charges.

Hewlett-Packard traded at $36.20 in the after-hours session, down 5.9 percent.