(Adds comments from H-P CEO in second and fourth paragraphs, and analyst in fifth paragraph.)
DOW JONES NEWSWIRES Hewlett-Packard Co. (HPQ), confirming last week's surprisingly strong estimates for the fiscal fourth quarter, reported net income rose 4.2% as aggressive costs cuts kept its bottom line buoyant in its first quarterly report since acquiring Electronic Data Systems Corp.
"We are confident that H-P can gain share, and emerge in a stronger competitive position," Chief Executive Mark Hurd said on a conference call with journalists. "We think it'll be a challenging environment, and we are planning as such."
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 the conference call, Hurd cautioned that "things can change; there are a lot of variables," adding that H-P is preparing for a potential slowdown in sales of its printers. But Hurd also confirmed the company's bullish outlook for its present fiscal quarter, which has been criticized for being too optimistic.
"I don't think Mark would put up a number that he doesn't think the company can achieve," said Bill Kreher, an Edward Jones analyst.
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%.
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. The purchase, set to close in February, 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 0.9% at $35.39.
-By Jay Miller, Dow Jones Newswires; 201-938-2331; jay.miller@dowjones.com
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(END) Dow Jones Newswires
November 24, 2008 17:13 ET (22:13 GMT)

Publié le 24 novembre 2008 Copyright © 2008 Dowjones