Hewlett-Packard Profit Climbs on Strong Printer, PC Sales
Hewlett-Packard posted a higher quarterly profit, helped by strong performances in its printer and personal computing businesses.
Excluding one-time items, profit for the company's fiscal first quarter rose to $1.826 billion, or 65 cents a share. Revenue rose 11% to $25.1 billion from $22.7 billion.
Consensus estimates had put the technology bellwether's quarterly earnings at 62 cents a share on sales of $24.3 billion, according to Thomson Financial. In the same period last year, HP earned 48 cents a share.
HP shares edged downward slightly in postmarket trading from their close of $43.13 on the New York Stock Exchange.
Including charges, net income for the quarter climbed to $1.55 billion, or 55 cents a share, from $1.23 billion, or 42 cents per share, a year ago.
The world's biggest maker of personal computers and printers said in November it expected first-quarter net earnings per share of 55 cents to 57 cents on revenue of $24.1 billion to $24.3 billion.
In the calendar fourth quarter, HP continued to take market share from longtime rival Dell
Shares of HP have risen about 4% in 2007. The stock trades at 14.7 times its forecasted earnings per share for fiscal 2008, compared with 13.5 times for rival IBM .
For the current second quarter, HP said it expects earnings per share -- excluding 6 cents a share for amortization of purchased intangible assets -- of 63 cents to 64 cents a share on revenue of about $24.5 billion.
Thomson estimates for the current quarter stand at 63 cents a share on revenue of between $23.7 billion and $24.5 billion.
Margin Improvements on Printers, Computers
HP said revenue in its imaging and printing business, a mainstay of its profits, rose 7% to $7 billion from a year ago, and the unit had an operating profit margin of 15.3%, up from 14.9% a year earlier.
HP's PC business, which includes desktop PCs, workstations and notebook computers, saw revenue rise 17% to $8.7 billion, and operating profit margin improve to 4.7% from 3.9%.
HP's services revenue increased 5% to $3.9 billion from the year-ago period.
Revenue at its storage and server business rose 5% to $4.5 billion, while operating profit margin in the unit rose to 9.3% from 7.7%.
Software revenue climbed 81 percent to $550 million after HP bought Mercury Interactive last year.