Hewlett-Packard’s final earnings report misses expectations

Hewlett-Packard took a final turn on Wall Street’s financial stage Tuesday with an earnings report that fell below analysts’ expectations.

The former Palo Alto technology giant, which became two companies on Nov. 1, reported fourth quarter earnings of 93 cents per share on $25.7 billion in revenue, which was down 9 percent from fourth quarter 2014 revenue.

Analysts had expected 97 cents on $26.36 billion in revenue.

Fiscal year revenue was $103.4 billion, down 7 percent from the fourth quarter of 2014.

The past month has seen the old HP become two companies – HP Inc., which makes printers and personal computers, and Hewlett Packard Enterprise, which sells technology to businesses.

The is the last time the old company will report earnings.

The old HP split up to better face the challenges confronting many Silicon Valley stalwarts, including Cisco Systems and Oracle. The internet cloud way of computing is gaining ground on the traditional data center technology that these companies specialize in. They are all scrambling to meet the demands of customers for more cloud based computing and less of the hardware that has been their speciality.

Daniel Ives, an analyst with FBR, said in a note Monday that “time (is) ticking for big tech,” with traditional IT, software and services switching to next generation areas such as cloud computing.

Photo: Old Hewlett-Packard emblem at HP headquarters in Palo alto ((Jim Gensheimer/Mercury News)

 

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