HP Beats Estimates, Raises Outlook
“Hewlett-Packard is our favorite name for this next batch of earnings reports,” Credit Suisse analyst Bill Shope wrote in a research note published last week. Today we found out why. After market close, the tech bellwether posted financials that exceeded analyst estimates. Earnings for HP’s first quarter were $1.10 a share, excluding one-time items–up from 93 cents a share in the same period a year earlier. And revenue was $31.2 billion, up from $28.8 billion.
Analysts had been expecting $1.06 a share on $30 billion in revenue.
All in all, a strong quarter. PC shipments grew 26 percent year-over year. Server revenue rose 11 percent. And Personal Systems Group revenue was up 20 percent.
Looking ahead to its second quarter, HP (HPQ) expects non-GAAP earnings-per-share of $1.03 to $1.05 on revenue of $29.4 billion to $29.7 billion. The company also raised its revenue outlook for fiscal 2010 to between $121.5 billion and $122.5 billion from an earlier forecast of $118 billion to $119 billion.
“HP is well-positioned to outperform the market,” HP CEO Mark Hurd said in a statement. “The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook.”