Gazing Beyond H-P's Earnings Report

Hewlett-Packard (HWP Quote) investors can be certain about first-quarter earnings for fiscal 2002, if nothing else.

The computer maker preannounced positive results Feb. 4, easing doubts about its December quarter. That means investors likely will look beyond this afternoon's earnings report and focus their nervous energy on the unsure outcome of the company's $25 billion acquisition of rival Compaq (CPQ Quote), the dissension among H-P's board of directors, and the tenure length of its CEO Carly Fiorina.

Hewlett-Packard pointed to higher PC and printing demand as the pillar supporting better-than-anticipated revenue and profits, as well as a jump in its gross margin.

Analysts' consensus calls for H-P to earn 25 cents a share on revenue of $11.19 billion, several notches above pre-Feb. 4 expectations. H-P's initial saw flat-to-worse revenue from the fourth quarter's $10.88 billion and flat earnings of about 19 cents a share. Dour consensus estimates called for earnings of 16 cents a share before the boxmaker set the market straight with its surprise upside guidance. ...