Hewlett-Packard Q1 estimates improve
Hewlett-Packard has announced that it expects its fiscal first quarterly results, which will be posted next week, to be better than anticipated.
Results are now expected to overtake initial estimates, which were that revenues would fall slightly from its reported €12.4bn in the fourth quarter. Lehman Brothers analyst Dan Niles says that he expects revenues to increase in the low-to mid single digits from the fourth quarter and sees earnings in a range of 28cent to 35cent per share.
This announcement, which has been sparked by improved consumer demand, is likely to impact on HPs recent and controversial €27bn acquisition of competitor Compaq Computer Corp.
Critics of the deal, who include members of the Hewlett and Packard families, say that the merger will increase HPs exposure to the troubled PC business.
Chief Executive Carly Fiorina, on the other hand, said during a presentation on Monday at a Goldman Sachs investment conference that the improved expectations for fiscal first quarter results, which will be reported on February 13th, show that HP is executing well and also said that the rise in consumer technology spending is perhaps a hopeful harbinger of economic recovery. Analysts believe that strong results could give management better credibility with HP investors, who in turn will be called to vote on the Compaq merger plan in March.
