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Hewlett-Packard Company (NYSE: HPQ) is trying to save technology stocks this morning all on its own.  Or that is how it seems with its guidance.  The company issued preliminary guidance for its fourth quarter-end in October with revenues of roughly $33.6 billion and $1.03 non-GAAP EPS.  Thomson Reuters (First Call) had estimates at $33.09 billion in revenues and $1.00 EPS.  The company is also giving its long-term goals for the next year and this is helping tech stocks.

What is perhaps even more important than just the last quarter is thatCEO Mark Hurd is project earnings all the way out one year and thatguidance is more than acceptable for today’s climate.  H-P’s projectedrange out to Fiscal Oct-2009 is now being put in a range of $3.88 to$4.03 EPS.  First Call has estimates at $3.85.  This even has weaker tech stocks and competitors trading higher initially:

• Dell (NASDAQ: DELL) is the top PC competitor and its stock is trading up over 3% at $10.90 this morning.
• IBM (NYSE: IBM) competes on the consulting side against EDS which H-P bought, and its stock is up nearly 2% at $78.93.
• With Intel (NASDAQ: IINTC) being the main processor supplier, its stock is up almost 2% at $13.24.
• With Microsoft (NASDAQ: MSFT) being the main operating system supplier, its stock is up over 2.5% at $19.69.

Hewlett-Packard (HPQ) stock is now up 12% at $33.00 pre-market.

Be advised that H-P has been a standout stock.  We have already seenmassive evidence elsewhere from key technology makers and keytechnology sellers from the high-end to the low-end that this economyis not leaving technology immune.  H-P has also made much of its stakeover the last two years and more at the expense of some of its rivals.

Dell also reports earnings this Thursday, and we have seen several downgrades and negative sentiment into this event.  What may be positive at H-P really may be at the expense of peers and competitors.

Jon C. Ogg
November 18, 2008