HP has better-than-expected Q2; raises 2010 forecast

19 May 2010

Computer manufacturer Hewlett-Packard (HP) has reported better-than-expected results for its second quarter as demand for its personal computers and servers surged.

The world’s biggest PC maker, which employs around 4,000 people in Ireland, reported second-quarter net profit of US$2.2bn, up from US$1.7bn a year previous.

HP’s earnings per share of US$1.09 during the second quarter beat analysts’ expectations of US$1.05 per share.

Net revenue of US$30.8bn was up 13pc or US$3.5bn from the same quarter a year earlier.

The group’s services revenue rose 2pc during the quarter to US$8.7bn, while its Enterprise Storage and Servers division reported total revenue of US$4.5bn, up 31pc.

HP’s PC division saw a 20pc rise in unit shipments and a 21pc increase in revenue to US$10bn. Notebook revenue for the quarter was up 17pc, while desktop revenue rose 27pc.

Revenue at HP’s imaging and printing group rose 8pc to US$6.4bn, but revenue from the group’s software division declined 1pc to US$871m.

“HP had an exceptional quarter with strong performance across every region,” said Mark Hurd, HP chairman and chief executive officer. “We’ve built the best portfolio in the industry, and our customers are responding. We’re winning in the marketplace, investing for the future and confident in the enormous opportunity that lies ahead.”

HP also raised its full-year outlook citing the “improving demand environment”. The company now expects full-year fiscal 2010 revenue growth of about 8-9pc.

It also expects diluted EPS for the full-year 2010 to be in the range of US$4.45-US$4.50, up from its previous estimate of between US$4.37-US$4.44.

Photo: Mark Hurd, HP chairman and chief executive officer

Article courtesy of Businessandleadership.com