HP Says First-Quarter Revenue Will Exceed Expectations
Hewlett-Packard's revenue for its fiscal first quarter, which ended Jan. 31, likely will be higher than forecast because of greater consumer demand and cost cutting, the company said yesterday.The computer and printer manufacturer had said in November that first-quarter revenue projections would be down slightly from the fourth quarter because of normal seasonal effects, with gross margins and expenses to be roughly flat with the fourth quarter.
HP reported revenue of $10.9 billion for its fourth quarter. The company releases its first-quarter results Feb. 13.
HP said the uptick in consumer demand in both personal computers and imaging and printing solutions has given the company reason to expect revenue to be moderately higher than in the fourth quarter. Because of its focus on cost structures and expenses, the company said, a measurable increase in gross margins is expected. As a result, HP expects to report earnings per share above current consensus analyst estimates of 16 cents.
"Economic conditions around the world continue to be challenging, but consumer technology spending is clearly showing some strength," CEO Carly Fiorina said in a statement. "These results demonstrate that we are focused on our customers and executing well. We remain convinced that we are up to the task of successfully integrating Compaq and creating a powerful new HP."
