Hewlett-Packard (HPQ) Earnings: Red Flag On Slowing Tech 2013

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Hewlett-Packard (HPQ) Earnings: Red Flag On Slowing Tech 2013

Post by Admin on Sun Sep 15, 2013 1:58 am

2013 2013 2013 The market was not unhappy about HP's earnings, but the applause was muted.<br /><br />HP's revenue rose 7% in its fiscal <a href="http://biz.yahoo.com/bw/061116/20061116005956.html?.v=1">Q4 to $24.6 billion</a>. The company forecast that annual sales for its 2007 fiscal year would rise about the same amount to $97 billion.<br /><br />HP's stock fell about 2% after hours to $39.60. The shares have been trading near their 62-week high.<br /><br />Revenue at HP's big personal systems group, which sells PCs, rose 10% to $7.8 billion, and revenue was up 7% at HP's imaging and printing group, hitting $7.3 billion. But, therein lies the problem. These two units are almost $15 billion of the quarter's $24 billion plus in revenue. And, the growth at the operations are unimpressive.<br /><br />In fiscal 2004, HP grew 9%. In fiscal 2005, revenue was up 9% again. Even with the share that the company is taking from Dell in the large PC market, HP's rapid growth is behind it, at least for now.<br /><br />At $40, the stock is now rich. <a href="http://quicktake.morningstar.com/Stock/MorningstarAnalysis.asp?Country=USA&Symbol=HPQ&amp;stocktab=analysis">Morningstar</a> carries a "fair market" value of $30 on the stock and suggests that investors consider selling when the stock is above $37.60. For a company that has lost much of its top-line growth potential, that is not unfair.<br /><br />Douglas A. McIntyre can be reached at <a href="mailto:douglasamcintyre@247wallst.com">douglasamcintyre@247wallst.com</a>. He does not own securities in companies that he writes about.<br> 2013 2013 2013 <br>The market was not unhappy about HP's earnings, but the applause was muted.<br /><br />HP's revenue rose 7% in its fiscal <a href="http://biz.yahoo.com/bw/061116/20061116005956.html?.v=1">Q4 to $24.6 billion</a>. The company forecast that annual sales for its 2007 fiscal year would rise about the same amount to $97 billion.<br /><br />HP's stock fell about 2% after hours to $39.60. The shares have been trading near their 62-week high.<br /><br />Revenue at HP's big personal systems group, which sells PCs, rose 10% to $7.8 billion, and revenue was up 7% at HP's imaging and printing group, hitting $7.3 billion. But, therein lies the problem. These two units are almost $15 billion of the quarter's $24 billion plus in revenue. And, the growth at the operations are unimpressive.<br /><br />In fiscal 2004, HP grew 9%. In fiscal 2005, revenue was up 9% again. Even with the share that the company is taking from Dell in the large PC market, HP's rapid growth is behind it, at least for now.<br /><br />At $40, the stock is now rich. <a href="http://quicktake.morningstar.com/Stock/MorningstarAnalysis.asp?Country=USA&Symbol=HPQ&amp;stocktab=analysis">Morningstar</a> carries a "fair market" value of $30 on the stock and suggests that investors consider selling when the stock is above $37.60. For a company that has lost much of its top-line growth potential, that is not unfair.<br /><br />Douglas A. McIntyre can be reached at <a href="mailto:douglasamcintyre@247wallst.com">douglasamcintyre@247wallst.com</a>. He does not own securities in companies that he writes about.<br>2013 2013 2013 <br> <a href="http://www.matrixar.com/" title="Matrix ">المصفوفة : أجمل الخلفيات والصور</a>

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