Hewlett-Packard 4Q Net Falls 2.4% >HPQ
"H-P capped off a strong year by delivering another solid quarter led by strength in our services segment and disciplined expense management," said Mark Hurd, chairman and chief executive.
Last Tuesday, the world's largest maker of personal computers, citing investor anxiety about the technology sector, gave Wall Street an early peek at its results for the quarter ended Oct. 31, revealing that earnings rose to 84 cents a share from 81 cents. Excluding items, primarily amortization of intangibles, earnings rose to $1.03 from 86 cents.
On Monday, H-P reported net income rose to $2.11 billion from $2.03 billion.
Revenue rose 19% to $33.6 billion, as estimated. The figure was up 2% excluding the acquisition of Electronic Data Systems and currency fluctuations.
Revenue jumped 17% in the Americas, 22% in the Europe, Middle East and Africa area and 14% in Asia Pacific. Revenue from the Brazil, Russia, India and China area rose 23%. Revenue from outside the U.S. accounted for 68% of the total, including 9% from the so-called BRIC countries.
H-P's operating margin narrowed to 8.2% from 9.3%.
Earnings in the services segment, this quarter's key driver, rose 79%. EDS is a part of this segment.
The core personal-computer business recorded a 4.6% rise in earnings, while the segment's unit shipments overall rose 19%. Earnings at H-P's printer unit - long its most profitable segment - rose 11%. Software earnings rose 34% to $195 million.
For the fiscal first quarter, the company also affirmed that it expects adjusted earnings of 93 cents to 95 cents a share and revenue of $32 billion to $32.5 billion. For fiscal 2009, H-P still expects earnings of $3.88 to $4.04 a share on revenue of $127.5 billion to $130 billion.
Despite the strong outlooks, H-P echoed analyst concerns about the strengthening dollar, saying last week the U.S. currency's rally will shave nearly five percentage points from fiscal first-quarter revenue and six to seven points off year revenue.
H-P closed its $13.9 billion buy of technology-service provider EDS in September and followed that up in October with an agreement to purchase LeftHand Networks Inc. for $360 million, a moved aimed at making H-P more competitive in storage area networks. Its acquisition of LeftHand Networks Inc., compelted earlier this month, shadows Dell Inc.'s (DELL) $1.4 billion acquisition of EqualLogic. H-P is in the process of laying off more than 24,000 of its 320,000 employees as it digests the EDS acquisition.
In after-hours trading, H-P shares were trading down 1% at $35.35.
-By Jay Miller, Dow Jones Newswires; 201-938-2331; jay.miller@dowjones.com
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Corrected November 25, 2008 13:42 ET (18:42 GMT)
(END) Dow Jones Newswires
November 24, 2008 16:45 ET (21:45 GMT)
Publié le 25 novembre 2008 Copyright © 2008 Dowjones
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