Earnings Preview : Hewlett Packard (HPQ)
Monday, February 15, 2022 1:20 PM

Related Stories



(By Tim) HP [NYSE: HPQ] will report earnings for the first quarter of 2010 on February 17 and hold a conference call to discuss the earnings at 4:30 EST. The company's fiscal quarter ended on January 31, 2010.

The consensus earnings estimate for the quarter is $1.06 per share on a fraction over $30 billion in revenues. A large number of analysts (29) put out estimates on HP and the range is a tight
$1.04 to $1.10. The $1.06 in earnings would be a 14% improvement on the 93ยข earned in the first quarter of 2009. The revenue estimate is 4.2% higher that the company's revenue a year earlier.

Over the last four quarters, HP has hit the earnings estimate spot on or a penny high. An earnings surprise here really would be a surprise. The current quarter earning estimate has been creeping upward with almost half the analysts increasing their prediction over the last 30 days.

Hewlett Packard was formed in 1939 when William Hewlett and David Packard started an electronic equipment business in a garage in Palo Alto. In the 1970's the company moved from electronic equipment into business equipment manufacturing. In the 1980's and 1990's Hewlett Packard was a major player in all aspect of computer equipment including workstations, minicomputers and personal computers. HP also became well known to the public for its inkjet and laser printers. In 2002 Hewlett Packard merged with Compaq in a deal valued at $19 billion for Compaq and the merged company started trading under the HPQ stock symbol. HP acquired EDS in 2008 for $13.9 billion to expand the company's offerings in the computer service sector.
HPQ is a component stock of the Dow Jones Industrial Average, the S&P 100 and the S&P 500.

HP's business is divided into the Personal Systems Group, which provides about 30% of revenues and makes HP the largest PC manufacturer in the world. Services are just behind the PSG in revenue and are currently the growth engine of the company. Imaging and Printing has contributed about 20% of revenues, but printer shipments were down 20% in the 4th quarter of 2009. Enterprise Storage and Servers was good for 14% of revenue but this segment is also dropping.

HP is in serious competition with Dell for the business and personal PC market. The release of Windows 7 by Microsoft should result in a boost for PC sales in this quarter. The Windows 7 effect is probably the main factor that could result in an earnings surprise. Right now, the HP business plan seems to be working to give the company 10% to 13% per year earnings growth for the foreseeable future.

 

Sponsors

Symbol :

Advertisement

Market news:

  • All-night shop-a-thon: Black Friday draws crowds Nov 26, 2021 11:32 AM

    • Bargain shoppers, braving rain or frigid weather, crowded the nation's stores in the wee hours of the night to get their hands on deals from TVs to toys on Black Friday.
    • In an encouraging sign for retailers and for the economy, more shoppers appeared to be buying for themselves than last year, when such indulgences were limited.
    • Brian Dunn, CEO of Best Buy Co., which started its holiday TV ads 11 days earlier this year than last year, reported customer counts were showing high single-digit percentage increase Friday morning compared last year.
      • Saudi forces arrest 149 al-Qaida suspects Nov 26, 2021 10:57 AM

        • RIYADH, Saudi Arabia - Saudi authorities said Friday they arrested 149 al-Qaida suspects in a months-long sweep and thwarted attacks inside the kingdom on government officials, media personalities and civilian targets.
        • Saudi Arabia's anti-terror campaign has largely crushed al-Qaida's operations in the kingdom since a series of attacks there that began in 2003.
        • Some key militants, however, fled across the southern border to Yemen, where the regional al-Qaida branch has re-established a stronghold from which to plot attacks on Saudi Arabia and beyond.
          • Russia opens key plant to destroy chemical weapons Nov 26, 2021 10:49 AM

            • POCHEP, Russia - Russia will miss a 2012 deadline for destroying all of its chemical weapons, officials said Friday as they inaugurated a major new plant to dispose of them.
            • Pochep will process nearly 19 percent of Russia's stockpile, or 7,500 tons of nerve agent used in aircraft-delivered munitions.
            • The plant, hidden in a dense birch forest, is key for Russia's commitment to destroy all of its chemical weapons by April 2012 as Russia deals with its vast arsenal of weapons of mass destruction.
              • Pakistan foils capital bomb plot; missiles kill 3 Nov 26, 2021 09:58 AM

                • ISLAMABAD - Police arrested two would-be suicide bombers planning to attack a mosque and a government building in Pakistan's capital Friday, as local officials said another suspected U.S. missile strike near the Afghan border killed three alleged insurgents.
                • The military has responded by launching offensives in the remote northwest where the insurgents are based, and the U.S. has increased its barrage of missile attacks on those strongholds out of reach of the Pakistani army.
                • Police officer Bin Yamin said the detained men were linked to the Pakistani Taliban in the South Waziristan region, where the army has been fighting the militants since last year.
                  • NKorea warns region is on brink of war Nov 26, 2021 09:15 AM

                    • YEONPYEONG ISLAND, South Korea - North Korea warned Friday that U.S.-South Korean plans for military maneuvers put the peninsula on the brink of war, and appeared to launch its own artillery drills within sight of an island it showered with a deadly barrage this week.
                    • The fresh artillery blasts were especially defiant because they came as the U.S. commander in South Korea, Gen. Walter Sharp, toured the South Korean island to survey damage from Tuesday's hail of North Korean artillery fire that killed four people.
                    • None of the latest rounds hit the South's territory, and U.S. military officials said Sharp did not even hear the concussions, though residents on other parts of the island panicked and ran back to the air raid shelters where they huddled earlier in the week as white smoke rose from North Korean territory.

                      More news


Advertisement

    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
GEOXXXXX PAY$0.31
mrbilltraderXXXXX POT$1.15
XXXXXXXXXX OVTI$0.43
sam farahanXXXXX TECD$0.95
XXXXXXXXXX GSS$0.05
XXXXXXXXXX ABB$0.31
adfgafg ERTS($0.26)
XXXXXXXXXX SD$0.03
XXXXXXXXXX ATML$0.11
XXXXXXXXXX CBPO$0.32