Hewlett-Packard has managed to keep afloat at a time when other players have borne the brunt of a slowdown in tech spending in the U.S. HP can thank its international presence for the state of affairs it finds itself in.
Shaw Wu, an analyst with American Technology Research said, "This is very different from what we heard from I.B.M. and Cisco, in particular. H.P. continues to execute in this very tough environment. The key reason is that they’re very global." HP generates a whopping 67 percent of its sales from overseas markets
In addition to the large global footprint, low exposure to the financial-services market provided a safety net for HP. Many analysts were earlier apprehensive that HP would take a hit this quarter. On the contrary, HP did pretty well. Bob Djurdjevic, president of Annex Research said, "There is obviously no evidence of a derogatory subprime impact. HP sailed unscathed through the troubled waters in the last three months."
The world’s largest technology company reported a strong fourth-quarter net profit and sales. To add icing on the cake it also predicted further growth in the coming months.
Mark V. Hurd, the chief executive of HP claimed that the company was unaffected even though American corporations were tightening their purse strings on technology spending. He said, "We’re seeing fairly steady demand. I don’t want to be confused with an economist in any way, shape or form."
Hewlett-Packard, the world's largest information technology corporation by revenue is headquartered in Palo Alto, California, United States. It has a global presence in the fields of computing, printing, and digital imaging, and also provides software and services. Worldwide, it is known for its printers, personal computers, high-end servers, and network management software.
The company beat estimates and boosted its revenues by 15 percent to $28.3 billion. Its net income rose 28%, up from $1.69 billion to $2.16 billion, in the quarter ended Oct. 31. On the profits front too the company surpassed the average estimate of analysts. Its profit was 86¢ per share excluding one-time charges.
H.P. forecasts sales to be in the region of $27.4 billion to $27.5 billion in the first quarter of 2008. Net income would reach 80 cents a share, not including one-time charges.
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