Toner News Mobile › Forums › Latest Industry News › HP REPORTS GOOD 4TH Q. AFTER LAYING-OFF 25,000 WORKERS
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AnonymousInactivehttp://www.google.com/hostednews/ap/article/ALeqM5isXYe7G5vnTPgUuN1NTHsnFfCxYQD94HDTK82
HP shares soar after solid 4Q outlook
NEW
YORK — Hewlett-Packard Co. surprised Wall Street on Tuesday by saying
its earnings will be slightly above analysts’ expectations, going
against the grain as other technology bellwethers have slashed
forecasts and posted weak results in the sagging economy.Its shares
climbed more than 12 percent in morning trading.The Palo Alto,
Calif.-based computer and printer maker expects earnings of 84 cents
per share and adjusted earnings of $1.03 per share for the three months
ended in October. This is slightly better than the $1 per share,
excluding items, that analysts polled by Thomson Reuters are expecting.HP
forecast revenue of $33.6 million, just ahead of analysts’ expectations
of $33.09 billion.The company, which plans to release full quarterly
results on Nov. 24, said in a statement that it was benefiting from
“global reach, diverse customer base, broad portfolio and numerous cost
initiatives.”HP’s $13.9 billion acquisition of Electronic Data Systems
Corp., completed in August, boosted the quarter’s revenue, which grew
19 percent year-over-year — or 16 percent when adjusted for the effects
of changing currency exchange rates. Without counting EDS, HP’s revenue
grew 5 percent, or 2 percent when adjusted for currency effects.HP’s
solid guidance comes as many other bellwethers in the technology sector
are hunkering down because consumers are businesses are putting off
spending on PCs and other equipment. Research firm IDC recently cut its
prediction for growth in worldwide information technology spending to
2.6 percent in 2009, down from its earlier forecast of a 5.9 percent
increase.Cisco Systems Inc. warned this month that orders for its
computer networking gear fell abruptly in October, and said it expects
sales to fall in the current quarter. Intel Corp., the world’s No. 1
chip maker, cut its fourth-quarter profit and revenue forecast last
week because of lower demand.Goldman Sachs analyst David Bailey
said HP’s disclosure reflects the company’s diversity and cost-cutting
abilities rather than broader factors that would lift other hardware
makers.In the current fiscal quarter, which ends in January, HP
forecast earnings of 80 to 82 cents per share, with adjusted earnings
of 93 to 95 cents per share, on sales of $32 billion to $32.5
billion.Analysts were predicting a profit of 93 cents per share on
sales of $33.7 billion.Shares jumped $3.40, nearly 12 percent, to
$32.74 in morning trading Tuesday. The stock was still down roughly 34
percent year-to-date, compared with about 37 percent for the Dow Jones
industrial average. -
AuthorNovember 19, 2008 at 12:39 PM
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