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PC sales help HP beat Q1 expectations

by Scott Bicheno on 20 February 2008, 12:11

Tags: HP (NYSE:HPQ)

Quick Link: HEXUS.net/qaltf

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The rich get richer

The world’s biggest PC maker has exceeded analyst expectations with its Q1 performance, which covers November and December ’07 and January ’08.

Its net revenue for the quarter was $28.5 billion, which was $3.4 billion and 13 per cent up on Q1 ’07. Chairman and CEO Mark Hurd’s cost saving measures seem to be paying dividends as operating profit was up 42 per cent to $2.6 billion. HP appears to be blowing the lot, and then some, on a $3.3 billion share repurchase.

A major factor in this above expectation performance was the good old PC. The Personal Systems Group (PSG) revenue grew 24 per cent to $10.8 billion, with unit shipments up 27 per cent. Notebook revenue was up 37 per cent and desktop revenue grew 15 per cent.

"We are raising our guidance yet again, reflecting our confidence in anticipated cost reductions and share gains in key markets," said Hurd. "We added more than 2,000 sales positions in the past year through acquisitions and hiring. HP remains well positioned for profitable growth as we continue to focus on our numerous cost initiatives and improve our market coverage."

HP estimates Q2 FY08 revenue will be approximately $27.7 billion to $27.9 billion and for the whole of FY08 revenue will be approximately $113.5 billion to $114.0 billion.

The results are essentially good news for the tech sector, but could also be an indication of a further polarisation of the PC market towards the big three of HP, Dell and Acer (/Gateway/Packard Bell).

Press release: HP Reports First Quarter 2008 Results



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