Hewlett-Packard announces better than expected quarterly results

Hewlett-Packard announced better than expected results on Friday and the stock managed to close nearly a percent higher in a market trading session that witnessed huge selloff. Market analysts were expecting poor numbers as HP has been facing tough times for the past several quarters.

As the PC sales have witnessed a drop in the last few quarters, HP was finding it difficult to meet the expectations of the Wall Street. HP will split its business into two segments in November. The PC, laptop and gadgets business will be a separate entity. HP will also setup another company for offering services and technology solutions to businesses.

After the results were announced, Hewlett-Packard stock jumped nearly 7.6 percent. However, towards the end of the trading session, most of the gains were wiped out and HP closed nearly a percent higher at $27.47.

Market experts at Citigroup feel that the bad news is finally over for HP. The company could look forward to strong quarterly numbers as it spins off its business into two major segments.

In the second quarter, HP registered 9.5 percent decline in PC shipments. The total revenue declined by 8.1 percent to $25.35 billion. Enterprise group revenue at HP increased by two percent. Enterprise services division registered 11 percent decline in sales.

HP earned 88 cents per share compared to 85 cents per share estimated by Thomson Reuters I/B/E/S.

On Friday, S&P 500 Index lost 3.2 percent as investors continued selloff due to negative news from China and European markets.