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Hewlett-Packard beats Street view, raises outlook

Hewlett-Packard beats Street view, raises outlook
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First Published: Wed, May 19 2010. 03 05 PM IST
Updated: Wed, May 19 2010. 03 05 PM IST
San Francisco: Hewlett-Packard Co’s quarterly results beat expectations on solid demand for personal computers and servers and a resurgence in its printing business, and the company raised its full-year earnings outlook.
Analysts say the world’s largest technology company by sales is poised to ride an expected surge in enterprise tech spending in 2010, as businesses replace aged equipment.
It reported on Tuesday an 8% jump in fiscal second-quarter revenue from its printing division, up from 4% growth in the fiscal first quarter. The division accounts for about one-fifth of revenue but a third of operating profit.
Higher-margin revenue from supplies climbed 6% from 1% previously.
The company is now forecasting a profit, excluding items, of $4.45 to $4.50 a share in fiscal 2010, up from a previous target of $4.37 to $4.44. That was in line to slightly stronger than Wall Street’s average forecast for $4.45.
HP reported a net profit of $2.2 billion, or 91 cents a share, in the fiscal second quarter ended April 30, up from $1.7 billion, or 71 cents a share, a year ago.
Excluding items, profit was $1.09 a share. Analysts on average had expected $1.05 a share, according to Thomson Reuters.
Net revenue rose 13% to $30.8 billion, compared with Wall Street’s forecast of $29.8 billion.
Shares of HP, which last month agreed to buy mobile phone maker Palm Inc for $1.2 billion, rose to $47.51 in after hours trading after closing at $46.79.
HP shares are down about 8% for the year. By contrast, shares of International Business Machines Corp are about flat, and Dell Inc shares have climbed about 6% over the same period.
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First Published: Wed, May 19 2010. 03 05 PM IST
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