HP Beats The Street Thanks To Strong PC Sales
Wednesday, May 16, 2007SUSIE GHARIB: A triple digit rally for the blue chips today powered the Dow to a new record high. The Dow surged 103 points and is now just shy of 13,500. Then after the bell, computer giant Hewlett-Packard reported solid earnings and its shares rose more than 2.5 percent in after hours trading. Excluding special items, HP earned $0.70 a share in its fiscal second quarter, a penny more than estimates and thanks to sales of personal computers. Revenues matched expectations, up 13 percent to $25.5 billion. Looking ahead, HP expects earnings of $0.64 to $0.65 on revenues of as much as $24 billion in the current quarter. Brian Alexander, computer analyst at Raymond James says having a diverse product line benefits HP`s bottom line.
BRIAN ALEXANDER, VP EQUITY RESEARCH, RAYMOND JAMES: This quarter, you could see the balance in HP`s portfolio really helping them sustain strong growth and profitability and they are the most, probably the most diversified technology company in the world and also the largest with over $100 billion of annual revenue, so I think it positions them well.
GHARIB: Alexander also predicts HP`s inventory and management will help it perform well over the next several quarters.
