indicates that HP has unveiled
its estimates for fiscal 2010 with a revenue forecast slightly
below what analysts predicted from the computer giant. Despite a
lower estimate than Wall Street expected, HP CEO Mark Hurd told
investors on a call that HP would outperform the industry.
said, "I know we'll get questions about how fast the market's
going to grow. Whatever that answer is that's handed to us in 2010,
we will grow faster. We expect the IT industry to return to growth in
2010 and believe that HP will outpace the market."
expecting corporate spending to resume in 2010 with companies ready
to replace aging machines with newer systems. That replacement cycle
for desktop and notebook computers will be fueled in part by the
anticipated Windows 7 OS launching soon.
While HP is expecting
spending to resume in 2010, HP CFO Cathie Lesjak doesn't expect the
increase to be robust. She said, "we haven't planned for it to
be really robust and we're waiting to see what really
Reuters reports that HP is forecasting
earnings excluding items of $4.20 to $4.30 per share on revenue of
$117 billion to $118 billion for fiscal 2010. If it hits those
numbers, the profit margin will be in the 11.4 to 11.6% range.
Analysts were expecting HP estimates to be $4.23 in profit per share
on revenues of $118.1 billion.
HP expects to grow its PC
business 3 to 5% over the year and to grow its services business by 2
to 4%. HP gobbled up EDS this year in a deal
worth $13 billion to become the second largest provider of tech
services in the industry, behind IBM.
Analyst Ronald Gruia
from Frost & Sullivan said, "The PC rebound is primarily
going to be driven by strong retail notebooks, which is HP's sweet
spot, and that bodes really well for them. Their services margin will
continue to improve and I think they're managing the EDS integration