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Hewlett Packard Posts Earnings After the Bell; Revenue Beats


CEO Meg Whitman was handed the tough task of turning the company around and surprise she did only three years into her big restructuring plan. In the most recent quarter, Hewlett Packard's bottom line shrank from a profit of almost 1.4 billion a year ago or 71 cents a share to $985 million, or 52 cents a share. However, HP's top line surprised Wall Street as revenue edged up 1.3% thanks to business in its enterprise group, which sells computer servers and other hardware. It also shipped more notebooks and desktops. Most of the company’s recovery is attributable to job cuts, expense cuts and smarter balance sheet management. Meanwhile, according to the tracking firm the Gartner Group, PC shipments dropped almost 1% worldwide in 2011, 4% in 2012 and nearly 10% last year. Looking to the current quarter, HP sees a profit between $1.03 and $1.07 a share, compared with Wall Street's estimate of $1.05.