HP says demand will boost earnings
Published: 04 Feb 2002 16:37 GMT
With the debate heating up over its merger with Compaq Computer, Hewlett-Packard said Monday that its first-quarter earnings and sales would top estimates, based on an "an uptick in consumer demand" for both PCs and printing and imaging products.
On 14 November, HP forecasted that revenue would be down slightly from the fourth quarter, but now projects that revenue will be up moderately for the quarter ending 31 January. HP reported sales of $10.9bn in the fourth quarter.
The company said it expects to report earnings "substantially above" First Call estimates of 16 cents a share. "Economic conditions around the world continue to be challenging, but consumer technology spending is clearly showing some strength," HP chief executive Carly Fiorina said in a statement.
Fiorina also said gross margins are improving on the PC, printing and services businesses. HP's news comes after Compaq's better-than-expected quarter. Both companies have taken great pains to show they can execute well despite any distractions over Walter Hewlett's vocal bid to derail the $25bn merger, which got a thumbs up from European regulators last week.
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