*NEWS*HP EARNS $1.38BIL IN Q3. 2006

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*NEWS*HP EARNS $1.38BIL IN Q3. 2006

 user 2006-11-07 at 11:26:00 am Views: 46
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    HP Earns $1.38 Billion in Q3, Plans Buyback
    Hewlett-Packard
    on Wednesday said its net income for the third quarter rose to US$1.38
    billion, or 48 cents a share, from $73 million, or 3 cents, a year
    earlier. The firm also announced a plan to buy back $6 billion worth of
    shares. HP’s stock rose 5 percent on the news and has gained 20 percent
    this year overall.Why smart money trusts HP Integrity servers with
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    today’s top global companies trust Itanium-based HP Integrity servers
    to keep their businesses up and running, regardless of workload
    pressures. Itanium+Integrity. On and on and on.Hewlett-Packard  Latest
    News about Hewlett-Packard, the world’s third-largest PC maker, on
    Wednesday reported third quarter profit gains that beat analyst
    estimates. The firm also announced a plan to buy back US$6 billion
    worth of shares.Net income for the world’s largest printer maker rose
    to $1.38 billion, or 48 cents a share, from $73 million, or 3 cents, a
    year earlier. Sales rose 5.4 percent to $21.9 billion.”HP delivered
    another solid quarter with strong revenue growth, improved margins and
    healthy cash flow,” said Mark Hurd, HP chief executive officer and
    president. “We gained share without sacrificing margins and continue to
    execute well against our long-term plan. This is visible in our third
    quarter results and improved fourth quarter outlook.”HP to the
    RescueHP’s stock rose 5 percent on the news and has gained 20 percent
    this year overall. Round Rock, Texas-based competitor Dell  Latest News
    about Dell, in contrast, has seen its shares drop 24 percent this
    year.Despite some analysts calling for Sony  Latest News about Sony to
    bear the burden of the cost, Dell’s stock is also suffering on news of
    a 4.1 million laptop battery recall this week.”Technology stocks this
    year [have] come down quite a lot since May. There’s been a lot of
    disappointment. We’ve seen few choices of where to put your money to
    get your tech allocations within a fund without it being rather
    dangerous,” Cantor Fitzgerald analyst Marc Pado told the E-Commerce
    Times. “HP offers a great story.”Beating Analyst EstimatesExcluding
    some costs, HP profit for the quarter ended July 31 was 52 cents a
    share, beating the 47 cents expected on average by analysts including
    UBS’s Benjamin Reitzes. Profit a year earlier was lowered by taxes for
    repatriated earnings, HP said.Profit this quarter, excluding some
    costs, will be 61 cents to 63 cents a share on sales of $24.1 billion.
    Analysts were anticipating 59 cents on sales of $24.1 billion, the
    average of 24 estimates in a Thomson Financial survey.HP’s printing
    unit remained the company’s most profitable in the third quarter,
    driven by orders for printing supplies such as ink. Profit rose to $884
    million from $771 million. Sales rose 5.4 percent to $6.23 billion.
    Profit margins widened to 14.2 percent from 13 percent a year
    earlier.Profiting From Dell’s LossThird-quarter PC sales climbed 8.3
    percent to $6.92 billion on a 14 percent hike in shipments. Earnings in
    the business surged to $275 million from $163 million, widening the
    profit margin to 4 percent from 2.6 percent a year earlier.HP is seeing
    the fruits of axed chief Carly Fiorina’s labor, Pado said, and it is a
    long time coming in a PC industry Dell commoditized.”You need to have
    the reputation and the ability to increase sales in this marketplace in
    order to really step ahead in earnings because Dell cut the margins to
    bare bones,” Pado noted. “HP came through. It took a while, but HP now
    rivals Dell in just-in-time inventories.”