HP (NYSE: HPQ) is continuing to grow its business, despite some weakness in consumer technology spending.
HP reported second quarter fiscal 2011 earnings today with Net Revenues of $31.6 billion, up by 3 percent on a year-over-year basis. Net Earnings were reported at $2.3 billion, up by 5 percent over the $2.2 billion reported for the second quarter of fiscal 2010. GAAP Earnings Per Share (EPS) was reported at $1.05, up by 15 percent on a year-over-year basis.
The positive results came from business spending, as HP’s consumer PC business faltered during the quarter. Revenues for HP’s Personal Systems Group declined by 5 percent on a year-over-year basis. In contrast, the Imaging and Printing Group actually grew revenues by 5 percent.
HP Software revenue grew 17 percent on a year-over-year basis as enterprise application demand drove increase spending.
In terms of enterprise hardware, HP’s Enterprise Servers, Storage and Networking (ESSN) revenue grew 15 percent year over year. During the quarter HP expanded its Networking business with its new FlexNetworking portfolio and continued its verbal assault on rival Cisco’s business.
Moving forward, HP is providing third quarter 2011 revenue guidance in the range of approximately $31.1 billion to $31.3 billion with GAAP diluted EPS of approximately $0.90.
“HP executed well and delivered a solid quarter,” said Leo Apotheker, HP president and chief executive officer in a statement. “Our enterprise strategy, with services at its core, is focused on higher value-added solutions. Today we are accelerating our efforts to align our services business model to our long-term strategy to deliver unprecedented value to our customers and a better return for our shareholders.”