HP 1Q Results to Exceed Current Analyst EPS Estimates Substantially
Press release from the issuing company
PALO ALTO, Calif.--Feb. 4, 2002--Hewlett-Packard today announced it will exceed previous guidance for its first fiscal quarter ending Jan. 31, 2002.
The company's previous first quarter guidance provided Nov. 14, 2001, was for revenues to be down slightly from the fourth quarter due to normal seasonal effects, with gross margins and expenses to be approximately flat with the fourth quarter.
Based on an uptick in consumer demand in both personal computers and imaging and printing solutions, the company now expects to report revenues that are up moderately over the fourth quarter. Because of a continued sharp focus on cost structures and expenses, HP now expects a measurable increase in gross margins with expenses approximately flat with fourth quarter levels. As a result, HP expects to report earnings per share at a level substantially above current consensus analyst estimates of 16 cents.
"Economic conditions around the world continue to be challenging, but consumer technology spending is clearly showing some strength,'' said Carly Fiorina, HP chairman and chief executive officer. "As a result, we are seeing better than expected revenues in our PC and imaging and printing businesses. We are not relenting on the expense side and continue to take decisive actions to improve our cost structure. Gross margins have improved in our PC and imaging and printing businesses, as well as in our services business.
"These results demonstrate that we are focused on our customers and executing well. We remain convinced that we are up to the task of successfully integrating Compaq and creating a powerful new HP,'' said Fiorina.
The company also announced that it will host its next semi-annual meeting for security analysts on Feb. 27, 2002, at the New York Hilton hotel.
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