HP 4Q PRINTER SALES FALL , BUT INK SALES UP 9%

[Anonymous]

http://www.google.com/hostednews/ap/article/ALeqM5gI5hjHdVfP6BgcAsqrdLN3-jw0sAD94LIU9G0
HP 4Q results beat views but printer sales fall
SAN
FRANCISCO — Hewlett-Packard Co. edged past Wall Street’s forecast for
the latest quarter, showing some resilience in troubled times, as
strong laptop sales helped offset falling printer orders and weakness
in some server lines.Profit slipped 2 percent while revenue grew 19
percent, helped by a huge acquisition.Electronic Data Systems Corp.,
which HP bought for $13.9 billion, added $3.9 billion in revenue.The
Palo Alto, Calif.-based company reported Monday that it managed to sell
$6.3 billion worth of laptops, a 21 percent increase from a year ago,
at a time when customers are scaling back spending.There was
significant weakness in other key areas, however. Revenue in two server
categories declined, and printer sales were off. Ink sales, a big
reason the printer division contributes half of HP’s entire operating
profit, were a bright spot. Supplies revenue, including ink, rose 9
percent.

HP had announced preliminary results last week to
reassure investors and shore up a sinking stock price. The full results
were released Monday after the market closed.Net income was $2.11
billion, or 84 cents per share, compared with $2.16 billion, or 81
cents per share, in the year-ago period. Excluding one-time costs, HP’s
profit was $1.03 per share, 2 cents per share higher than the average
estimate of analysts polled by Thomson Reuters.Sales were $33.6
billion, a 19 percent increase over last year’s $28.3 billion.
Excluding the effects of a weak dollar, revenue rose 16 percent.
Analysts were expecting $33.3 billion.

HP repeated its earlier
forecast for the current fiscal year, which includes a warning that
further strengthening of the dollar is expected to hurt sales. Deals
done in other currencies translate into fewer greenbacks when those
currencies fall in value compared to the dollar.In the first quarter,
HP expects profit of 93 cents per share to 95 cents per share,
excluding one-time charges, on sales of $32 billion to $32.5 billion.
For the full 2009 fiscal year, HP expects profit of $3.88 per share to
$4.03 per share, excluding items. Sales are projected to be $127.5
billion to $130 billion.HP’s stock fell 31 cents to $35.39 in
after-hours trading. It had closed up $1.06, or 3.1 percent, at $35.70
during the regular trading session.

[Author]

November 26, 2008 at 2:14 PM