HP sees Q4 gains from EDS acquisition
Hewlett Packard reported a net profit of $2.11 billion, or 84 cents per share, on revenue of $33.6 billion for its fourth quarter. (Statement) The results and an outlook for 2009 matched the preliminary figures the company release on Nov. 18. The preliminary report had topped Wall Street expectations and drove shares of HP up by 14 percent that day.
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The company was helped by its acquisition of Electronic Data Systems. Excluding EDS, the company's overall revenue grew just five percent. But with EDS, the services revenue was up 99 percent to $8.6 billion. In a statement, chairman and chief executive officer Mark Hurd, said:
HP capped off a strong year by delivering another solid quarter led by strength in our services segment and disciplined expense management. Our global reach, broad portfolio, numerous cost initiatives and consistent execution differentiate HP in the current economic environment.
The company reaffirmed its first quarter 2009 forecast of 93 cents to 95 cents per share, excluding items, on revenue of $32 to $32.5 billion. For fiscal 2009, the company is expecting earnings of $3.88 to $4.03 per share, excluding items, on revenue of $127.5 billion to $130 billion.
In a conference call with analysts, Hurd said it was "challenging environment" and called the guidance "conservative."
Shares of HP were up more than 3 percent in regular trading, closing at $35.70. Shares were down about one percent in after-hours trading.