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

Investors Warm to HP but Big Challenges Remain

Storage giant EMC (EMC), for example, missed Wall Street's top- and bottom-line estimates in its first-quarter results last month, while networking specialist Riverbed (RVBD) cited soft government spending when posting weaker-than-expected first-quarter numbers.

HP's arch-rival IBM (IBM - Get Report) also missed Wall Street's top and bottom-line estimates in its first-quarter results, with the tech giant's hardware business experiencing a particularly sharp decline.

"Given continued macroeconomic challenges, the enterprise market is expected to remain muted in the near term, placing pressure on HP's end markets," wrote Kulbinder Garcha, an analyst at Credit Suisse, in a note.

The analyst also predicts an "anemic" performance from HP's PC and printing businesses. "Given Dell's recent statement on discounting PCs in order to regain share, HP's position may continue to be challenged," he wrote. Garcha expects the company's Personal Systems Group to generate second-quarter revenue of $8.6 billion, a decline of 9% compared to the prior year's quarter.

During the first quarter, HP's Personal Systems sales declined 8% year over year, while Printing revenue was down 5%.

The Palo Alto, Calif.-based firm will report its second-quarter numbers after market close.

-- Written by James Rogers in New York.

>To submit a news tip, send an email to:
2 of 2

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%
RVBD $20.99 -0.05%
IBM $121.04 0.00%
HPQ $9.42 0.00%
AAPL $93.99 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs