A look at HP’s quarterly numbers, by division
Hewlett-Packard Co.’s 25-percent jump in net income in its November-January quarter was driven by better numbers in most of the technology company’s major divisions. Here are some highlights on those divisions:
– Services: Revenue slipped 1 percent to $8.7 billion. Operating profit rose 27 percent to $1.4 billion.
– Printers and ink (Imaging and Printing Group): Revenue rose 4 percent to $6.2 billion. Revenue from ink and other supplies was up 1 percent. Ink is one of HP’s biggest moneymakers. The division’s operating profit was flat at $1.1 billion.
– Computer servers and storage (Enterprise Storage and Servers): Revenue rose 11 percent to $4.4 billion. Operating profit rose 36 percent to $552 million.
– Personal computers (Personal Systems Group): Revenue increased 20 percent to $10.6 billion. Operating profit jumped 22 percent to $530 million.
– Software: Revenue was flat at $878 million. Operating profit rose 19 percent to $167 million
– Financial services: Revenue increased 13 percent to $719 million.
But the presence of the Indigo and now the digital web presses say to me that HP may have a very defensible position in the under appreciated Print industry. Suffice it to say that my Print-centric IRA is well over 100% up since I started managing it about a year ago.
Printers and Ink ( Imaging and Printing Group) are the wrong buckets. I don't know much about the ink business, but my bet is that margins are only going lower. On a global scale it might turn out to continue to be the great cash generator as before. If I had to bet on it, I wouldn't.
If HP gave me a way to invest in the Print piece instead of all the other complicated opaque (2me) businesses, it would be grand.