HP issues upbeat guidance for 2014
San Jose, Calif. • Hewlett-Packard is upbeat about 2014, saying it will be a year of "recovery and expansion."
The technology bellwether on Wednesday projected earnings for the fiscal year starting in November that exceeded analysts' forecasts and predicted "stabilizing revenue declines."
HP's stock rose 6.1 percent to $22.01 in afternoon trading. The shares have gained about 55 percent this year.
HP has been trying to ease the pain of a declining PC market by cutting costs and focusing on more profitable areas.
In a presentation to analysts Wednesday, CEO Meg Whitman said the company will focus on new products and services next year while controlling costs under a stable leadership. "While there is a lot more work to be done, I am confident about the progress we are making," Whitman said in a statement.
The San Jose, Calif., company expects net income, excluding one-time items, of $3.55 to $3.75 per share in the 2014 fiscal year. The midpoint is 3 cents higher than the $3.62 analysts polled by FactSet expected.
The company said it would also return at least half of its $6 billion to $6.5 billion in free cash flow next year to shareholders through dividends and stock repurchases, which can support earnings per share.