HP sees a modest 3% growth in sales

In a recent financial announcement, Hewlett-Packard (HP) revealed its Q3 results, with the world's largest IT company experiencing a 3% growth in revenue, amounting to $26.0 billion. However, the results also showed a challenging picture for some of HP's divisions.

The PC and laptop division sales saw a decline, dropping by 5% to $9.4 billion. This decrease was largely attributed to a 23% plunge in consumer device sales. The average rate of revenue growth in the business IT industry is currently over 10%, making HP's PC and laptop division's growth lower than the industry average.

On a positive note, HP's server, storage, and network division saw a significant increase in revenues, amounting to $5.6 billion, representing a 15% increase. This division's growth rate was higher than the average growth rate in the business IT industry.

The IT services division of HP also grew, albeit at a slower pace, with revenues rising by 2% to $9.0 billion. However, the growth of this division was lower than that of the server, storage, and network division.

The net earnings of HP rose by 5% to $2.3 billion. Despite this increase, a leaked memo from CEO Leo Apotheker, reported by financial news agency Bloomberg, predicted a "tough quarter" for the company in the next three months. In the memo, Apotheker advised HP executives to watch every penny and minimize all hiring, citing the current level of staffing as unaffordable given the pressures on the business.

The results announcement was made ahead of its original schedule, possibly indicating a proactive approach to address any potential concerns or issues arising from the leaked memo.

In a positive development, the current CEO of Hewlett-Packard Enterprise (HPE), Antonio Neri, has been working to improve the company's financial situation. He has delivered record revenue and improved profitability, notably through strategic acquisitions such as Juniper Networks and focusing on capturing market opportunities across server and networking segments.

As HP navigates through this challenging quarter, the focus remains on strategic decisions and cost management to ensure the company's long-term success in the competitive IT industry.