Hewlett-Packard To Report Q4 Results: Earnings Preview
Symbols:
HPQ
(RTTNews) - Computer and printer maker Hewlett-Packard Co. (HPQ | Quote | Chart | News | PowerRating) is scheduled to report fourth-quarter results after the market closes on Monday. On average, 30 analysts polled by Thomson Reuters expect the company to earn $1.13 per share for the quarter ended October 31 with estimates ranging between $1.09 and $1.14 per share. Revenues are estimated to be $30.36 billion. Analysts' estimates typically exclude special items.
The Palo Alto, California-based company, the world's No. 1 PC maker, last week provided preliminary fourth quarter results saying it expects fourth quarter GAAP earnings of $0.99 per share and non-GAAP earnings of $1.14 per share. The company also said it expects to record fourth quarter revenue of $30.8 billion.
According to market research firm Gartner, Inc. (IT | Quote | Chart | News | PowerRating), worldwide PC shipments increased in the third quarter by 0.5% year-over-year to 80.9 million units. HP continued to lead the worldwide PC market with market share of 19.9%, followed by Acer with 15.4% market share and Dell Inc. (DELL | Quote | Chart | News | PowerRating) with 12.8% market share, Gartner said. However, Dell was the top PC vendor in the U.S. in the third quarter, with a market share of 26.2%.
In the first quarter of 2009, HP clinched the top spot in the U.S. PC market, which is the world's biggest, from Dell, which had held that position since 1999. Dell had lost the global PC lead to HP in 2006.
Yet, its printer and ink division may be a cause for worry for HP. Apart from generic competition and a reduction in corporate spending, currency fluctuations also may have a negative impact on the segment.
For the fourth quarter of fiscal 2008, HP's net earnings were $2.112 billion or $0.84 per share. Net revenue for the quarter was $33.603 billion.
On August 18, HP said its third quarter profit dropped 19% from last year amid sharp revenue drops in its PC, printer and server businesses. The company reported third-quarter GAAP net income of $1.64 billion or $0.67 per share, down from $2.03 billion or $0.80 per share reported for the year-ago quarter. HP, which is the world's largest technology company, said net revenue for the third quarter slipped 2% to $27.45 billion from $28.03 billion in the same quarter last year.
For the full year, analysts expect HP's earnings to range between $3.78 and $3.84 per share with a consensus of $3.82 per share. Full-year revenues are estimated to be $113.91 billion.
For fiscal 2008, the company's net earnings were $8.329 billion or $3.25 per share. Net revenue for the year was $118.364 billion.
Last week, HP also raised its 2010 guidance. The company now expects Fiscal 2010 GAAP earnings in the range of $3.65 to $3.75 per share, up from the prior range of $3.60 to $3.70 per share. Non-GAAP earnings are now estimated in the range of $4.25 to $4.35 per share, up from its previous estimate of $4.20 to $4.30 per share. Revenues for the year are now expected to range between $118.0 billion and $119.0 billion, up from the prior range of $117.0 billion to $118.0 billion.
Among latest events, Hewlett-Packard said early this month that it agreed to buy enterprise networking solutions provider 3Com Corp. (COMS | Quote | Chart | News | PowerRating) for about $7.90 per share in cash or an enterprise value of about $2.7 billion. The transaction is indicated to close in the first half of 2010 and is expected to be slightly dilutive to the company's fiscal 2010 non-GAAP earnings.
The acquisition is expected to expand HP's Ethernet switching offerings, while adding routing solutions and significantly strengthening its position in China. Through the acquisition, 3Com also brings to HP network security capabilities through its TippingPoint portfolio.
Among others in the industry, PC maker Dell said last week that its third-quarter profit declined 54% from last year, as revenue dropped and margins shrank amid global market share loss and weak corporate demand. The company reported third-quarter net income of $337 million or $0.17 per share, a sharp decline from $727 million or $0.37 per share reported for the year-ago quarter. Revenue for the third quarter dropped 15% to $12.90 billion from $15.16 billion in the same quarter last year.
FBR Capital Markets last week forecast that fourth-quarter PC builds would decline -1.5% from the last quarter. Analyst Craig Berger said in a research note that desktop builds are now projected to decrease 16.5% sequentially, compared with month-ago checks of a 4.5% drop, while notebook builds in the fourth quarter are estimated to grow 9% from the previous quarter, compared to the month-ago checks of a 11.5% increase. The brokerage said its fourth-quarter PC build checks will likely be perceived as having mixed overtones for HP. 'Our channel contacts tell us that upside at Compal is being driven by Hewlett Packard,' the firm noted.
HPQ closed Friday's regular trade at $50.04, up $0.22 or 0.44%, on 14.39 million shares. For the past year, the stock traded in the range of $25.39-$51.43.
For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
The Palo Alto, California-based company, the world's No. 1 PC maker, last week provided preliminary fourth quarter results saying it expects fourth quarter GAAP earnings of $0.99 per share and non-GAAP earnings of $1.14 per share. The company also said it expects to record fourth quarter revenue of $30.8 billion.
According to market research firm Gartner, Inc. (IT | Quote | Chart | News | PowerRating), worldwide PC shipments increased in the third quarter by 0.5% year-over-year to 80.9 million units. HP continued to lead the worldwide PC market with market share of 19.9%, followed by Acer with 15.4% market share and Dell Inc. (DELL | Quote | Chart | News | PowerRating) with 12.8% market share, Gartner said. However, Dell was the top PC vendor in the U.S. in the third quarter, with a market share of 26.2%.
In the first quarter of 2009, HP clinched the top spot in the U.S. PC market, which is the world's biggest, from Dell, which had held that position since 1999. Dell had lost the global PC lead to HP in 2006.
Yet, its printer and ink division may be a cause for worry for HP. Apart from generic competition and a reduction in corporate spending, currency fluctuations also may have a negative impact on the segment.
For the fourth quarter of fiscal 2008, HP's net earnings were $2.112 billion or $0.84 per share. Net revenue for the quarter was $33.603 billion.
On August 18, HP said its third quarter profit dropped 19% from last year amid sharp revenue drops in its PC, printer and server businesses. The company reported third-quarter GAAP net income of $1.64 billion or $0.67 per share, down from $2.03 billion or $0.80 per share reported for the year-ago quarter. HP, which is the world's largest technology company, said net revenue for the third quarter slipped 2% to $27.45 billion from $28.03 billion in the same quarter last year.
For the full year, analysts expect HP's earnings to range between $3.78 and $3.84 per share with a consensus of $3.82 per share. Full-year revenues are estimated to be $113.91 billion.
For fiscal 2008, the company's net earnings were $8.329 billion or $3.25 per share. Net revenue for the year was $118.364 billion.
Last week, HP also raised its 2010 guidance. The company now expects Fiscal 2010 GAAP earnings in the range of $3.65 to $3.75 per share, up from the prior range of $3.60 to $3.70 per share. Non-GAAP earnings are now estimated in the range of $4.25 to $4.35 per share, up from its previous estimate of $4.20 to $4.30 per share. Revenues for the year are now expected to range between $118.0 billion and $119.0 billion, up from the prior range of $117.0 billion to $118.0 billion.
Among latest events, Hewlett-Packard said early this month that it agreed to buy enterprise networking solutions provider 3Com Corp. (COMS | Quote | Chart | News | PowerRating) for about $7.90 per share in cash or an enterprise value of about $2.7 billion. The transaction is indicated to close in the first half of 2010 and is expected to be slightly dilutive to the company's fiscal 2010 non-GAAP earnings.
The acquisition is expected to expand HP's Ethernet switching offerings, while adding routing solutions and significantly strengthening its position in China. Through the acquisition, 3Com also brings to HP network security capabilities through its TippingPoint portfolio.
Among others in the industry, PC maker Dell said last week that its third-quarter profit declined 54% from last year, as revenue dropped and margins shrank amid global market share loss and weak corporate demand. The company reported third-quarter net income of $337 million or $0.17 per share, a sharp decline from $727 million or $0.37 per share reported for the year-ago quarter. Revenue for the third quarter dropped 15% to $12.90 billion from $15.16 billion in the same quarter last year.
FBR Capital Markets last week forecast that fourth-quarter PC builds would decline -1.5% from the last quarter. Analyst Craig Berger said in a research note that desktop builds are now projected to decrease 16.5% sequentially, compared with month-ago checks of a 4.5% drop, while notebook builds in the fourth quarter are estimated to grow 9% from the previous quarter, compared to the month-ago checks of a 11.5% increase. The brokerage said its fourth-quarter PC build checks will likely be perceived as having mixed overtones for HP. 'Our channel contacts tell us that upside at Compal is being driven by Hewlett Packard,' the firm noted.
HPQ closed Friday's regular trade at $50.04, up $0.22 or 0.44%, on 14.39 million shares. For the past year, the stock traded in the range of $25.39-$51.43.
For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
For full details on Hewlett-Packard Co (HPQ) HPQ. Hewlett-Packard Co (HPQ) has Short Term PowerRatings at TradingMarkets. Details on Hewlett-Packard Co (HPQ) Short Term PowerRatings is available at This Link.
Related News
- China Crescent Enterprises, Inc. Finalizes Agenda for Pacific Rim Sales Conference at Le Royal Meridien Shanghai Featuring Hew - 02/09/10
- AGMA Gathers Technology Leaders, Law Enforcement Agencies to Examine Brand Protection Best Practices - 02/09/10
- Comtex SmarTrend(R) Morning Call -- February 9, 2010 - 02/09/10
- Hands-free monitoring cuts super fund glitches - 02/08/10
- HEWLETT PACKARD (HP) IT EQUIPMENT - 02/08/10
- More News >>
UPCOMING EVENTS
Learn new strategies, how to trade in this market, and the stocks you should be focusing on each day. Join us for our free 20 minute tele-seminars during the week.
Thursday February 11 04:30 PM
Thursday February 11 12:30 PM
Wednesday February 10 01:00 PM
* Attendance is strictly limited and are filled on a first-come, first-served basis.
