Hewlett-Packard Proves Bull Case For Tech

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By some measures, Hewlett-Packard (NYSE:HPQ) is the largest technology company in the world, with annual sales well over $100 billion. The breadth of its business, which include software, PCs, printers, servers and consulting, make it a nearly perfect measure for the state of the industry.

HP net incomes rose 20% for its fiscal first quarter to $3 billion. EPS was $0.96, up from $0.75 in the prior-year period. Revenue rose 8% to $31.2 billion. The company reported double-digit growth in its server, printer, and PC units.

For the second quarter of fiscal 2010, HP expects revenue of about $29.4 billion to $29.7 billion, GAAP diluted EPS in the range of $0.89 to $0.91. HP estimates full year fiscal 2010 revenue will be about $121.5 billion to $122.5 billion, up from its previous estimate of $118.0 billion to $119.0 billion. HP expects full year fiscal 2010 GAAP diluted EPS to be in the range of $3.79 to $3.86, up from its previous estimate of $3.65 to $3.75.

The only soft spot in the earnings report was from HP’s largest division–services. HP customers must need hardware and software more than they do help in operating them.

Douglas A. McIntyre