- This topic has 0 replies, 1 voice, and was last updated 9 years, 9 months ago by
.
-
Posts
-
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
Intel Itanium 2 processors. Download this white paper now and learn why
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.”
- You must be logged in to reply to this topic.