Dell
Despite an accidental information leak, HP is giddy
with newfound guidance.
The computer systems and printer maker today announced revised second-quarter guidance after the “inadvertent disclosure” of finances through an
internal e-mail sent Monday to an outside party.
Citing “strong operational results” in its Personal Systems Group business
and industry-standard server segment, HP now expects second-quarter revenue
of between $25.5 billion to $25.55 billion on GAAP earnings per share of 64 cents to 65 cents.
The revised expectation is $1 billion more than HP projected in February, when it anticipated revenue of $24.5 billion and GAAP EPS
between 57 cents to 58 cents.
Whatever the final tallies may be when the company reports May 16, HP
expects Q2 sales to be substantially more than the $22.6 billion the vendor
recorded in the second quarter of 2006.
HP also said it expects third-quarter 2007 revenue of $23.7 billion to
$23.9 billion on GAAP EPS between 59 cents to 61 cents.
Analysts at equities firm Robert W. Baird praised HP’s preannouncement, and
pledged to maintain its “outperform” rating.
“With a strong product portfolio and improved cost structure, we expect HP
will continue to profitably leverage its massive installed base and
distribution network,” the analysts said in a research note today.
“We remain encouraged by the company’s prudent use of cash toward share
repurchases and continue to believe the shares represent compelling value
given EPS upside prospects.”
Though they were not released intentionally, the results are symbolic of
HP’s turnaround since CEO Mark Hurd replaced
Carly Fiorina in April 2005.
With Hurd at the helm, the company clawed its way back from a few sub-par quarters in its enterprise server and storage business amid some corporate restructuring, layoffs and acquisitions, as well as a pretexting scandal that rocked the company’s board of directors.
Well into its rebound, HP has also taken over the top, worldwide PC sales
mantle from Dell, which is struggling to get back on its feet after a year
of financial improprieties and other bad publicity. still leads in the U.S., albeit by a small margin.
HP Expects $1B More in Q2 Sales
