Revenues up at HP

21 May 2008

Hewlett Packard (HP) posted net revenue of US$28.3bn for Q208, up 11pc year-over-year.

GAAP operating profit was US$2.6bn, up 22pc year-over-year, and GAAP diluted earnings-per-share (EPS) was US$0.80, up from US$0.65 in the prior-year period.

Net earning was US$2.1bn, up 16pc year-over-year.

“HP turned in another strong quarter, supported by improvement across our businesses,” said Mark Hurd, chairman and CEO, HP. “With 70pc of revenue now coming from outside the US, we benefited from robust demand in emerging economies. The company’s financial outlook demonstrates its strength in the global marketplace.”

Revenue in the Americas grew 4pc on a year-over-year basis to US$11.1bn. Revenue grew 16pc in Europe, the Middle East and Africa to US$11.9bn. Revenue grew 16pc in Asia Pacific to US$5.2bn.

When adjusted for the effects of currency, revenue in the Americas grew 2pc, revenue in Europe, the Middle East and Africa grew 6pc, and revenue in Asia Pacific grew 7pc. Revenue from outside the US in the second quarter was 70pc of the total, with revenue in the BRIC countries (Brazil, Russia, India and China) growing 26pc over the prior-year period and accounting for 10pc of total revenue.

HP estimates Q3 FY08 revenue will be approximately US$27.3bn to US$27.4bn.

HP estimates FY08 revenue will be approximately US$114.2bn to US$114.4bn, up from previous guidance of US$113.5bn to US$114bn.

HP’s recent acquisition of IT services firm EDS is expected to close in the second half of this year. Estimates for full year 2008 do not reflect the potential impact of the acquisition of EDS.

By Niall Byrne