H-P Humming Along
In a quarter that has wounded so many tech giants,
Thanks to strong profit margins across many of its key businesses, H-P boosted its net income by more than 50% year over year, with an EPS several cents above Wall Street estimates -- the latest in a string of impressive results produced by the company's restructuring plan.
"HP is a company that we think is really in a sweet spot right now," said Mark Hillman, the chief information officer of Hillman Capital Management, which has a long position in the company. "We think [CEO Mark Hurd] is just getting started as far as making the enterprise more efficient and more profitable."
The company achieved 24.8% gross margins and 8% operating margins during its fiscal second quarter, its highest level in years, according to analysts.And the prospect that even more savings lie ahead was enough to put aside, at least for the moment, any questions about the company's top line, which grew 5% year over year to $22.6 billion during the quarter. Shares of H-P were recently up 3.7%, or $1.14, at $32.25 on Wednesday morning. By contrast, shares of Intel
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV