HP expects to outpace market in 2010

Computing giant is bullish about the coming year, with CEO Mark Hurd declaring that he expects "strong, let me say it one more time, strong growth" in printing.
Written by Sam Diaz, Inactive

Hewlett-Packard is bullish on 2010.

CEO Mark Hurd said Thursday at a meeting with analysts that he expects the IT industry to return to growth in 2010 and went so far as to say that HP will outpace the market.

"Our broad product and services portfolio and global scale give HP a clear competitive advantage," he said in a statement. "As a result, we see tremendous opportunity to grow our business and improve earnings while delivering value to our customers."

The company provided HP's outlook for the year, with revenue expected to be between US$117 billion and US$118 billion, reflecting a year-over-year growth of 3 percent to 4 percent. GAAP earnings per share is expected to be US$3.60 to US$3.70, a year-over-year jump of 17 percent to 20 percent, and non-GAAP of US$4.20 to US$4.30, or 10 percent to 13 percent year over year. Here's a look at how that breaks down by segment:

The company said it plans to improve margins, by leveraging a leaner cost structure, while continuing to invest for growth.

In a Q&A with analysts, Hurd addressed projections for the printing division, once considered a cash cow for the company. HP sees strong growth ahead in printing and executives noted that more revenue will come from hardware than supplies. Hurd said he expects "strong, let me say it one more time, strong growth" in printing and will be aggressive about gaining market share.

"If the market is there, we'll be there to get it," he said.

This article was first published as a blog post on ZDNet.

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