Hewlett-Packard Reiterates 2001 Growth Targets

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Hewlett-Packard

(HWP)

still expects revenue growth in the 15% to 17% range for the fiscal year ending Oct. 31, 2001, and said it remains comfortable with analysts' estimates for the first quarter.

The company's outlook comes

a day after PC maker

Gateway

(GTW)

warned that fourth-quarter earnings and revenue would be well below Wall Street's projections, a disclosure that has unleashed

widespread selling of the boxmakers.

According to

First Call/Thomson Financial

, analysts expect HP to earn 44 cents a share in the first quarter.

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In a statement, Hewlett-Packard said "unlike some of our competitors, HP is far more than a U.S.-centric consumer PC company, with less than 10% of our business in this segment." The company expects gross margins in 2001 of 27.5% to 28.5%, and added that total operating expenses will increase 10% to 12% from fiscal 2000.

Hewlett-Packard, which missed fourth-quarter estimates by 10 cents a share, also expects that "the bulk of our growth in FY 2001 will be driven by strong momentum in our Internet infrastructure and printing businesses."