HP announces robust profits
February 20, 2008
On February nineteenth, the world’s largest personal computer maker Hewlett-Packard announced robust profits in its first fiscal quarter. This latest report from the company led to the stock prices soaring sky high in the after-hours after trading. The profit they which they announced in the sales and earnings were much higher than the estimates and all the predicted gains. This again proves that the company is gaining a lot of market share when compared to many of its credible rivals and that its move to cut cost is paying off.
Hewlett-Packard also published its expected revenue and gain guidance for the second quarter as well as the complete fiscal year. After the announcement was made the shares of the company (HPQ, Fortune 500) went as high as 6 percent in the after hours trading session.
When the first quarter of the company came to an end in the month of January, the net returns leaped 13 percent to reach $28.5 billlion which was more than what the forecast had been. The expected revenue in the first quarter according to the valuation of Thomson One Analytics was only $27.6 billion. The PC giant was able to earn $2.1billion more, which is 80 cents per share, than the previous year. The growth that happened in this period was of the magnitude of 38 percent. HP also reported profits of 86 cents per share if various one-time items were excluded. This was also well ahead of the expected 81 cents per share.
On nineteenth HP also issued the expected sales for the second quarter. They said that it was going to be in the range of $27.7 billion to $27.9 billion. This again was higher than the predicted estimate of $27.4 billion. And as for the full year also HP said that company’s expected revenue is going to be more than the predicted returns of $111.7 billion. Company officials said that they are expecting a full year return of $113.5 billion to $114 billion.
According to the company almost 70 percent of its first quarter revenue came from places outside the United States of America. They said that revenue that came from newly emerged markets like Russia, India, China and Brazil had grown by 35 percent from last year. The large amount of international exposure the company got was a huge bonus for the company considering the present economic scenario in USA now. The company believes that being able to reach the global position it is in now was a huge advantage.
The branch in the company which saw maximum gains was the Personal Systems Group. This branch which deals with notebooks and desktops for both commercial as well personal uses saw an increase in sales of 24 percent. The HP’s service division also saw in increase in sales of 11 percent from last year. The latest report will help the company in getting a lead in the PC market. The profits the company made will be more than enough to make sure that the company remains immune to any troubles that might happen as a result of the economic turbulences.