Hewlett-Packard Co. surprised Wall Street by saying its earnings would be slightly above analysts' expectations, going against the grain as other technology bellwethers have slashed forecasts and posted weak results in the sagging economy.
The Palo Alto-based computer and printer maker expects earnings of 84 cents a share and adjusted earnings of $1.03 a share for the three months that ended in October. This is slightly better than the $1 a share, excluding items, that analysts polled by Thomson Reuters are expecting.
For The Record
Los Angeles Times Thursday, November 20, 2008 Home Edition Main News Part A Page 2 National Desk 1 inches; 36 words Type of Material: Correction
Hewlett-Packard earnings: An article in Business on Wednesday about Hewlett-Packard Co.'s quarterly earnings forecast said the computer maker expected revenue of $33.6 million for the three months ended in October. The correct figure is $33.6 billion.
HP forecast revenue of $33.6 million, ahead of analysts' expectations of $33.09 billion.
HP's $13.9-billion acquisition of Electronic Data Systems Corp., completed in August, boosted the quarter's revenue, which grew 19% year over year. Without counting EDS, HP's revenue grew 5%.
In the current fiscal quarter, which ends in January, HP forecast earnings of 80 cents to 82 cents a share, with adjusted earnings of 93 to 95 cents a share, on sales of $32 billion to $32.5 billion.
Analysts were predicting a profit of 93 cents a share on sales of $33.7 billion.
Hewlett-Packard shares climbed $4.25, or 14.5%, to $33.59.