Hewlett-Packard (HPQ) Earnings Preview

Hewlett-Packard (HPQ) reports Q1 after the bell. The company has already announced stronger than expected revenue and EPS, so the important information will be colour on the conference call. The conference call is scheduled for 5PM ET. We will be covering the call with live analysis here.

HP had originally scheduled its conference call for last Thursday, but pushed it back following its announcement of its intended purchase of Electronic Data Systems (EDS). HP will pay $25 per share in a $13.9 billion deal designed to boost HP’s service revenue and help it compete with IBM.

HP has so far weathered economic weakness that has felled other bellwethers, and its preliminary results suggest it has done so this quarter as well. HP released preliminary results last week and said that it earned revenue of $28.3 billion (vs. $27.7-$27.9 guidance) and $0.87 of non-GAAP EPS.

Key colour on call will be the impact of economic weakness (if any), as well as shifts in margins and product mix.

Key stats

  • Revenue: $28.3 preannounced. Guidance was $27.7 billion – $27.9 billion
  • EPS: $0.87 pre-announced vs. $0.85 consensus. Guidance was $0.83-$0.84.
  • Outlook: Q3 Revenue guidance $27.3-$27.4 billion (consensus $27.35). EPS $0.82-$0.83 (consensus $0.82). 2008 consensus: Revenue $114.2 billion; EPS $3.54 2009 consensus: Revenue $120.3 billion; EPS $3.93
  • Q3 Revenue guidance $27.3-$27.4 billion (consensus $27.35). EPS $0.82-$0.83 (consensus $0.82).
  • 2008 consensus: Revenue $114.2 billion; EPS $3.54
  • 2009 consensus: Revenue $120.3 billion; EPS $3.93

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