This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

H-P Beats the Street (Update)

SAN FRANCISCO - Hewlett-Packard (HPQ - Get Report) outpaced Wall Street's third-quarter earnings estimates Tuesday.

Shares of H-P were recently up 2.8% to $44.93 in after-hours trading.

Net income grew 14% to $2 billion, or 80 cents a share, from $1.8 billion, or 66 cents a share, in the year-ago period.

Excluding special charges, EPS was 86 cents. Analysts were looking for 83 cents.

Revenue at the Palo Alto, Calif., tech company rose 10% to $28 billion, or 4.7% in constant currency, from $25.4 billion for the same quarter of last year. Analysts polled by Thomson Reuters were expecting $27.4 billion.

Operating margin, excluding special items, improved 80 basis points year over year to 9.8%.

In the company's PC business, revenue rose 15% to $10.3 billion, driven by unit growth of 37% in notebooks for total unit growth of 20%.

Printer group revenue grew 3.4% year over year to $7 billion, despite a drop in the number of printer units shipped. Executives cited increased adoption of H-P's digital and wireless printers and growing demand in certain categories of printing supplies.

Uptake of H-P's Indigo digital graphics unit for commercial print companies yielded 31% year-over-year growth in page volume, which drives sales of ink.

The company now has more flexibility to focus more exclusively on higher-margin products, Chairman and CEO Mark Hurd said on Tuesday's conference call.

"Graphics is a strong story for us. We're interested in growing that because of the [impact] it can make in supplies growth," Hurd said.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
EDS $1.13 2.73%
IBM $138.46 0.00%
HPQ $12.61 0.00%
AAPL $117.81 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs