HP posts $936M profit, revenue gain for Q1

Revenue for the quarter, which ended Jan. 31, totaled $19.5B

Hewlett-Packard Co. yesterday reported first-quarter net income of $936 million, with earnings per share of 30 cents.

Excluding special items such as restructuring costs and acquisition charges, the company posted an operating profit of $1.4 billion, or 35 cents per share, in line with estimates by financial analysts surveyed by Thomson Financial/First Call.

Revenue for the quarter, which ended Jan. 31, totaled $19.5 billion, slightly above analysts' estimate of $19.4 billion. Revenue grew about 9% from the year-earlier quarter, according to a company statement.

HP's Enterprise Systems unit, which makes products including storage and servers for large enterprises, turned itself around in the quarter from a loss one year earlier. The unit posted an operating profit of $108 million, according to HP.

Revenue from both desktop and server PCs boosted the Personal Systems division, and the Imaging and Printing business posted record revenue, the company said.

"HP delivered a solid quarter," Carly Fiorina, HP's chairman and CEO, said in a statement. "In a seasonally weak period, we demonstrated HP's earnings potential with our most balanced profit performance since the merger" with Compaq Computer Corp. two years ago.

Looking ahead, the company said it expects revenue of between $19.2 billion and $19.6 billion in its second fiscal quarter. The company expects earnings per share of approximately 34 cents on a non-GAAP basis, which is in line with current consensus estimates. HP also affirmed current consensus earnings estimates of $1.43 per share on a non-GAAP basis for the full fiscal 2004.

If those numbers hold, it would represent a year-over-year increase of 23% for the company.

Copyright © 2004 IDG Communications, Inc.

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