Hewlett-Packard Puts Euro in Focus - TheStreet

Hewlett-Packard Puts Euro in Focus

H-P is set to report April quarter results and all eyes turn to the PC maker's outlook on Europe.
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NEW YORK (

TheStreet

) -- Sure,

Hewlett-Packard

(HPQ) - Get Report

rode a big bounce back in tech spending in the April quarter, but investors worry about the bumps ahead as southern Europe faces financial turmoil.

Tech investors will turn their attention to H-P when it reports its fiscal second quarter results after the bell Tuesday. And as tech sector peers

Intel

(INTC) - Get Report

,

Microsoft

(MSFT) - Get Report

and

Cisco

(CSCO) - Get Report

have already shown, the wallets opened wide on PCs and other tech purchases in the first half of this year.

As the top computer maker and No. 2 server seller, H-P has booked a giant's share of the business as consumers and businesses went shopping for upgrades early this year. The big question is whether that buying spree was a temporary snapback or a big step toward a full tech spending recovery.

The answer will likely be in H-P's business outlook.

Analysts aren't expecting any fireworks there. If anything, the concern is that all the first-half fun will be doused by the big splash of a falling euro.

In an H-P preview note to clients, UBS analyst Maynard Um wrote that the company's outlook "is likely to embed some conservatism given ongoing macro uncertainty and potential currency and component pricing headwinds."

The best parallel might be Cisco, which posted strong April quarter numbers but offered a

tepid forecast

for the July period.

Analysts expect H-P to post adjusted earnings of $1.05 a share on sales of $29.8 billion, according to a Yahoo! Finance tally. Looking ahead at the July quarter, the consensus opinion calls for earnings of $1.07 on $29.7 billion in revenue.

Investors have been making an effort to sidestep any H-P disappointment. The stock is down 12% in the past month and was trading down 1% to $47.18 midday Tuesday ahead of earnings.

--Written by Scott Moritz in New York.

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