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Hewlett-Packard (HPQ) Posts Strong "Beat and Raise" Q2

May 18, 2010 4:38 PM EDT
HPQ Hot Sheet
EPS Growth %: -21.0%

Financial Fact:
Services: 10.66B

Today's EPS Names:
TARO, BRLI, TLB, More
Hewlett-Packard Company (NYSE: HPQ) said Tuesday that its quarterly profit and sales outpaced the market expectations on the strength of consumers returning to the PC market following the recession.

The world’s leading maker of personal computers reported fiscal second-quarter earnings of $2.2 billion or 91 cents per share, compared with $1.7 billion or 71 cents per share in the same quarter last year.

Excluding one-time items, HP earned $1.09 per share in the three month period ended April 30, 4 cents better than the market estimate of $1.05 per share.

Revenue for the company, which recently agreed to purchase the beleaguered smart phone maker Palm Inc. (NASDAQ: PALM) for $1.2 billion, rose 13 percent to $30.8 billion, beating the market consensus of $29.82 billion.

"HP had an exceptional quarter with strong performance across every region," said Mark Hurd, HP chairman and chief executive officer. "We've built the best portfolio in the industry, and our customers are responding. We're winning in the marketplace, investing for the future and confident in the enormous opportunity that lies ahead."

Looking forward, the HP sees earnings in the third quarter in the range of $1.05 to $1.07 per share on sales of $29.7 billion to $30 billion, compared to the Street's outlook of $1.07 per share and $29.72 respectively.

The company also raised its full-year 2010 earnings forecast from $4.37 to $4.44 per share to $4.45 to $4.50 per share, compared to the market consensus of $4.45 per share.

UPDATE: Click here to see some highlights from HP's Q2 conference call.

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