CNET también está disponible en español.

Ir a español

Don't show this again

Christmas Gift Guide
Tech Industry

HP posts strong 3Q, sets 2-for-1 split

Strong growth in all divisions helped Hewlett-Packard (NYSE: HWP) easily hurdle analyst forecasts in the third quarter.

After market close Wednesday, the technology company reported fiscal third quarter net income of $1.1 billion from operations. HP reported earnings of 97 cents per share, excluding equity gains. First Call's survey of 20 analysts predicted a profit of 85 cents per share for HP's quarter ended July 31.

HP also announced a 2-for-1 stock split, payable Oct.27 to shareholders of Sept. 27 record. It will be the sixth stock split for HP since 1977.

Including equity income, HP in the third quarter earned 99 cents per share.

During HP's quarterly conference call on Wednesday afternoon, a number of analysts questioned whether certain items in the company's reported financial results were included in Wall Street's earnings models. But even if the entire "Interest income and other" line is excluded from income statements, HP earned about 93 cents per share, CFO Robert Wayman told analysts.

"We think that's a very reasonable way to look at it in relation to published expectations," Wayman said.

Third quarter revenue increased 14.6 percent year-over-year to $11.8 billion from $10.3 billion. IT services led growth with a 17 percent year-over-year increase to $1.82 billion from $1.55 billion.

"We posted what I would characterize as superb results," president and CEO Carly Fiorina said, during a Wednesday conference call with analysts.

HP reiterated its fourth quarter prediction of revenue growth in the 15 percent range. The company might see higher growth, but Wayman refused to raise his target because of concerns about corporate desktop PC growth, demand for monochrome laser printers, and a potentially tight market for technology components such as DRAM.

"There could be upside ... but at this point, it's just too hard to predict," Wayman said.

Computing systems generated $5.17 billion in revenue, up 12 percent from $4.63 billion in the comparable period a year earlier.

Unix server revenue increased 13 percent, with unit orders rising 43 percent. Revenue from low end Unix servers increased 117 percent year-over-year, while orders in that field more than doubled, Fiorina said. Mid-range servers saw flat year-over-year revenue growth, although orders rose 19 percent.

Average selling prices in the mid-range increased 27 percent. "Customers are opting for richer configurations in this segment," Fiorina said, adding that International Data Corp. figures indicate HP's mid-range market share rose 2.7 points, on a percentage basis.

HP's high end Unix server business declined. The company's hopes in that area rest on the Superdome product, scheduled for release later this year.

Home PC revenue gained 62 percent. Notebook sales grew 93 percent. "Our growth in the PC industry is clearly outpacing all competitors," Fiorina said.

Imaging and printing revenue rose 15 percent year-over-year to $4.81 billion from $4.19 billion. PhotoSmart and All-in-One products fueled much of the growth, said Carly Fiorina, CEO and chairman of HP.

HP, like other printer vendors, has seen slowing demand for monochrome laser printers. "The key difference is, as the market leader in the color printing business, with a market share of 46 percent worldwide, we are the beneficiaries of this shift," Fiorina told analysts. "In fact, we are driving it."

U.S. business grew to $5.3 billion, up 13 percent from the year-ago period. European revenue increased 8 percent to $3.8 billion. Asia Pacific revenue rose 36 percent to $1.8 billion. Latin American sales gained 27 percent to $600 million.

Imaging and printing revenue rose 15 percent year-over-year to $4.81 billion from $4.19 billion. PhotoSmart and All-in-One products fueled much of the growth, said Carly Fiorina, CEO and chairman of HP.

HP, like other printer vendors, has seen slowing demand for monochrome laser printers. "The key difference is, as the market leader in the color printing business, with a market share of 46 percent worldwide, we are the beneficiaries of this shift," Fiorina told analysts. "In fact, we are driving it."

U.S. business grew to $5.3 billion, up 13 percent from the year-ago period. European revenue increased 8 percent to $3.8 billion. Asia Pacific revenue rose 36 percent to $1.8 billion. Latin American sales gained 27 percent to $600 million.>