HP fourth-quarter profit jumps 28 percent

Hewlett-Packard Co.'s fourth-quarter profit easily exceeded Wall Street's expectations, bolstered by surging laptop sales and continued strong demand for highly profitable printer ink.

The board of the Palo Alto-based computer and printer maker also authorized an additional $8 billion for stock buybacks, a sign the company believes its shares are undervalued.

Strong PC sales have fueled much of HP's growth, but the company doesn't expect that business to keep growing as fast as it has. Printer ink continues to be the company's cash cow.

A brighter financial forecast helped lift shares 45 cents in after-hours trading Monday to $49.89. During the regular session, before the results were reported, the stock fell $1.31 to $49.44.

HP's net income leaped 28 percent in the three months ended Oct. 31, rising from $1.69 billion, or 60 cents per share, to $2.16 billion, or 81 cents per share.

Excluding one-time charges, HP's profit was 86 cents per share, four cents higher than the average estimate of analysts polled by Thomson Financial.

Sales jumped 15 percent over last year to $28.29 billion, nearly $1 billion more than the $27.4 billion Wall Street was expecting.

Laptop sales jumped 49 percent over last year to $5.16 billion, the company's highest-selling single category. Desktop computer sales rose 15 percent to $4.21 billion.

Taken together, the two categories made up roughly a third of HP's overall sales during the quarter.

HP is the world's No. 1 PC seller. Since stealing the title away from Dell Inc. more than a year ago, HP has expanded its lead to nearly 5 percentage points, commanding 20 percent of the market, compared with Dell's roughly 15 percent, according to the latest data from market researcher IDC.

At the same time last year, HP held only a slight lead. Cheaper PC component prices, particularly for memory chips, have helped both companies.

Despite the gains in PC sales, HP's most profitable business is still printer ink.

The company derived 42 percent of its $2.63 billion in total operating profits in the latest quarter from its Imaging and Printing Group, nearly double the amount contributed by the Personal Systems Group, which includes PCs.

As the world's largest technology company, HP's results are closely watched for signs about the health of technology spending.

Investors were particularly interested this quarter in whether HP was hurt by the mortgage distress in the U.S. that has saddled banks with billions of dollars in losses.

Chief Executive Mark Hurd dismissed those concerns, saying HP derives only a small slice of its business from the financial services sector. He didn't see any "material weakness" in that segment during the latest quarter, he said Monday.

"We're actually trying to get more exposed to financial services_ we see that as a big opportunity for us," Hurd said on a conference call with analysts.

For the full fiscal year 2007, HP rang up $104.3 billion in sales, a 14 percent improvement over last year and the first time HP has cracked $100 billion in annual sales. Net income for the year was $7.26 billion, or $2.68 per share.

Investors were pleased with a higher financial forecast.

HP expects profits - excluding one-time charges - of 80 cents per share in the first quarter, three cents higher than Wall Street's forecasts. And it predicts sales between $27.4 billion and $27.5 billion, also higher than the $27 billion analysts were expecting.

HP cautioned investors against expecting the PC business to keep up its rapid gains. The company's current forecasts incorporate a more conservative estimate for PC growth than the actual rate that business has grown in recent quarters.

Still, HP said it expected to continue taking market share from other makers.

"The numbers we've delivered are huge - it's not prudent to build a business model on that," Hurd said in an interview. "We're not building our models on the kind of growth we've seen in the past." ( AP )

Number of ships received at Turkish Gemlik port in 1Q2021 revealed
Number of ships received at Turkish Gemlik port in 1Q2021 revealed
Turkey ratifies agreement on international combined transport of goods with Georgia
Turkey ratifies agreement on international combined transport of goods with Georgia
Turkey's central bank leaves key policy rate unchanged at 19%
Turkey's central bank leaves key policy rate unchanged at 19%
Loading Bars
Latest
Kazakhstan-China Pipeline LLP opens tender on repairs of pipelines
Uzbekistan, Ireland consider establishing co-op in tourism sector
Egyptian gymnast talks AGF's organization of World Cup in Baku
Nuvei acquires Israeli fintech co Simplex for $250m
SOCAR’s Petkim increases production capacity to 92%
Kazakhstan decreases imports of Belgium-made goods
Thailand expects up to 20 mln doses of Pfizer vaccine from July
Shusha declared cultural capital of Azerbaijan - presidential order
Kazakhstan's inflation rate for April 2021 revealed
Number of ships received at Turkish Gemlik port in 1Q2021 revealed
Putin instructs government to support international Arctic expedition
Kazakhstan’s Nostrum identifies measures to add to PDP reserves
Azerbaijan’s renewable energy path: ongoing and future projects
Georgia reports 1,547 new cases of coronavirus for May 7
Uzbekistan eyes attracting Singaporean companies for co-op in electrical industry
Turkey ratifies agreement on international combined transport of goods with Georgia
Kazakhstan boosts trade with Spain
Latest prices for Azerbaijani oil announced
Wide opportunities opening for TRACECA to implement major projects (PHOTO)
Azerbaijan establishes uninterrupted water supply to liberated Hadrut village
Construction of new main water pipeline to Shusha begins in Azerbaijan
Gold, silver prices increase in Azerbaijan
Size of hydrogen aircraft market by 2040 disclosed
Czech companies interested in implementing green energy projects in Uzbekistan
Azerbaijani Ro-Pax type ferry on its first voyage, en route to Kuryk port (PHOTO)
Kazakhstan’s freight transportation operator opens tender to test wheelsets
Countries Need To Assist India In Its Battle Against Second Wave Of Covid: Deloitte CEO
Cement adhesive and dry mortar mixes plant in Georgia expands with state support
WTO Patent Waiver Will Enable Timely Access Of Covid Vaccines: India
Russia promises to show its best at Expo 2020 in Dubai
Friendship between India and UAE increasing as their allies continues in pandemic
UK PM Johnson's party win election for parliament seat
First day of Rhythmic Gymnastics World Cup kicks off in Baku (PHOTO)
India taking steps for economy growth
Multilateral Response Is Critical To Overcome Pandemic In India, Globally: IMF
Indian defence organisations engaged in mitigating people’s sufferings amid Covid surge
India, EU likely to resume FTA talks stalled for 8 years
Bank of Israel bought $5.27b foreign currency in April
EURO 2020 Trophy presented to Azerbaijani President Ilham Aliyev (PHOTO)
Uzbekistan reveals COVID-19 data for May 7
Azerbaijan, TRACECA discuss regional opportunities of post-Karabakh conflict period
Azerbaijani currency rates for May 7
Organization of Azerbaijani Veterans appeals to Russian FM
IFC interested in supporting Azerbaijan’s energy transition
IFC supported Azerbaijan’s private sector with around $850 million, says director
IFC to engage in formulating new WB Partnership Framework for Azerbaijan - Director
Tesla tells regulator that full self-driving cars may not be achieved by year-end
India's daily COVID-19 cases rise by record 414,188
Azerbaijani president pays constant attention to work in liberated lands - administration (PHOTO)
Germany's exports up 2.6 pct in april
Brazil's COVID-19 cases surpass 15 million
Turkmenistan offers business opportunities for Swiss private sector in number of areas
Progress has been made in lifting JCPOA related sanctions - Head of Iranian President's office
Turkey, Brazil and US remain main exporters of poultry meat to Georgia
Turkey's central bank leaves key policy rate unchanged at 19%
Tajikistan official confirms the death of 19 citizens in the recent border clashes
GM posts strong performance in Q1
Bundestag approves easing of COVID-19 rules for immunized people
Diamond demand in China directly benefits Botswana: De Beers
U.S. weekly jobless claims drop to 498,000, marking new low during pandemic
WHO says COVID-19 vaccine supply hitches could reignite upticks in Africa
Food prices continue to climb in April - FAO
Turkey reports over 22 388 COVID-19 cases
At least 23 killed in Rio de Janeiro favela gun battle
Kyrgyzstan is interested in establishing joint Kyrgyz-Korean enterprises
Turkey's 1Q2021 revenues from car export to int'l market grow
We reject, don't recognize decision of Latvian gov't on so-called "Armenian genocide" - Turkish Defense Ministry
Georgia launches campaign to popularize state agricultural insurance program
New “Azerbaijan” Ro-Pax ship built in country’s shipyard to make its first voyage from Port of Baku (PHOTO/VİDEO)
Former Maldives president hurt in blast outside home
Turkey’s inactive COVID-19 vaccine makes it to WHO list
Saudi Arabia showing interest in importing Azerbaijan's AzGranata products
Araghchi arrives in Vienna to attend 4th round of JCPOA talks
Kazakhstan - Greece trade down y-o-y
Georgian banks see profit in 1Q2021
Azerbaijan’s Azerishig company opens tender to buy various combined, storage accessories
Uzbek TPP to use German equipment for energy production
Azerbaijani national team holds podium training for upcoming Rhythmic Gymnastics World Cup in Baku (VIDEO)
International Bank of Azerbaijan opens tender to buy Cisco network switches
Kazakhstan, Russia lift mutual restrictions on import, transit of livestock products
World auto concerns’ production volume to decrease during 6M2021
OSCE Chairperson-in-Office welcomes release of Armenian detainees by Azerbaijan
Greece decreases petroleum oil exports from Kazakhstan
Sputnik Light vaccine can be used for people aged 18-60
Moderna booster increases antibodies against COVID-19 variants, early data shows
Azerbaijan names amount of subsidies paid out for cropping
Yerevan ready to exert all efforts to fulfill trilateral agreements on Karabakh - acting PM of Armenia
Lebanon could gradually go dark as cash for electricity runs out
New greenhouse to be built in Turkmenistan’s Mary region
Several digitalization projects implemented in Kazakh oil & gas sector
Kazakhstan's president decides to provide humanitarian aid to Kyrgyzstan
Real estate purchases soar in Kazakhstan
Saudi Arabia eyes importing finished meat products from Uzbekistan
Azerbaijan's non-oil exports show positive trend despite impact of COVID-19 - minister
Kazakh Kazgeology eyes working on promising areas of natural resources
Main part of Iran's trade carried out by sea - analyst
Israel and Korea to sign free trade agreement next week
EU continues to support Georgia SMEs
Azerbaijan launches system for predicting impact of tax benefits on state revenues
Azerbaijan's AzFina, CBA developing bill on regulation of payment systems
All news