February 18 news, Hewlett-Packard Company today announced first quarter 2010 (October 2009 -2010 1 month) earnings report, statistics show that company's net profit reached 2.32 billion U.S. dollars, an increase of 25%. The total turnover of 31.2 billion U.S. dollars, earnings per share were 1.10 U.S. dollars, all better than analyst expectations. Than-expected earnings report
Analysts believe that this performance is attributed to holiday season spending surges, the growth in demand from China and business users to update old equipment.
Deduction of certain expenses, the first-quarter earnings per share up to 1.10 U.S. dollars after a Bloomberg News survey showed the average analyst forecast of 1.06 U.S. dollars / share. Net profit reached 2.32 billion U.S. dollars, or 96 cents per share, a year earlier to 18.6 billion dollars in 25%. Total sales rose 8.2% to 31.2 billion U.S. dollars, more than analysts had expected 30 billion U.S. dollars. The company also raised its full-year outlook and said it would hire more sales staff.
In the BRIC countries (BRIC, Brazil, Russia, India and China), Hewlett-Packard sales jumped 41%, in some parts of Europe performance has exceeded expectations. Company CEO Mark Hurd (Mark Hurd) said that through technological innovation, the company won from the hands of competitors, the market share.
Hurd said in an interview: "Our team did a great job, our printer, PC and server markets, has won a greater market share."
That day, HP's stock price during regular trading on the New York Stock Exchange, rose 0.68 U.S. dollars to close at 50.12 U.S. dollars, or 1.38% in after-hours trading, shares rose 0.53 U.S. dollars again, to 50.65 U.S. dollars.
Increase is expected to
Hewlett-Packard to its full-year earnings per share forecast raised to 4.37-4.44 from 4.35 U.S. dollars U.S. dollars, the total sales of 119 billion U.S. dollars raised from 1215-1225 billion U.S. dollars.
The company said total sales this quarter would be between 29.4 billion -297 billion U.S. dollars, earnings per share of 1.03-1.05 U.S. dollars, analysts had forecast second-quarter sales of 29 billion U.S. dollars, earnings per share of 1.03 U.S. dollars.
Market research firm Cross Research analyst Shannon Cross said: "Hewlett-Packard in the challenging market environment has made a very good performance. In the next few quarters, due to the improved economic environment, HP is likely to achieve higher profits. "She recommends investors to buy Hewlett-Packard shares now.
Hot Printers
Hewlett-Packard picked up from the PC to benefit the needs of many, especially low-cost Internet access to this. Hewlett-Packard is the world's largest printer manufacturer in the quarter, the company launched several new models of printers, attractive to users, the company can not even output to meet demand.
Heard in an analyst meeting, said: "We hope that we will be able to yield even greater. Companies are gradually increasing stocks, hoping to meet the demand in the second half."
In response to six years, the biggest PC market downturn, Hart last year to reduce executive pay by 10% -15%, staff salaries have decreased by 5%.
In the 2009 fourth quarter, PC shipments rise sharply, according to research firm IDC, the U.S. market up to 24% increase in volume shipments. Laptops are particularly consumers, including low-cost Internet access and configuration of this, its price generally lower than 500 dollars. Over the same period worldwide PC shipment growth to reach 15%.
The next hot spot
Hewlett-Packard in 2006 from the hands of Dell's largest PC maker won the top spot with Acer now ranks second, while Dell's PC market, due to gradually reduce the dependence on the only third. Dell's financial report will be released tomorrow.
In HP's total revenue, PC business contributed 30%, while the printers and a variety of supplies contributing more than 20%.
PC industry recovery in the round, the play's contribution to business users than personal users. However, UBS AG analyst Maynard Um noted that this situation may be improved, because the industry has begun to purchase new computers to update their obsolete equipment. Hurd also said: "in the second half there will be more companies upgrade their equipment." Hewlett-Packard also offers servers, storage equipment, computer services, software and networking equipment.
Hurd hopes the business for business users than the PC and printer to achieve higher profit margins. In 2008 to 13.2 billion U.S. dollars, he acquired United States Electronic Data Systems Corporation (Electronic Data Services Corp.), Enhanced HP in the computer services business in the business.
Last year in December, HP announced a 2.7 billion U.S. dollars to buy network equipment maker 3Com's plan, which will allow the company access to enterprise data centers valuable technology, in particular, can expand in China-related businesses. Is expected that the acquisition will be completed in June.
Bloomberg survey of analysts HP's stock recommendations 24 analysts recommended investors to buy eight analysts recommend holding, no one recommends selling.
