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HP beats estimates with profit, outlook

23 Nov 2010
00:00
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HP has reported a 14% increase in full-year profit and given an upbeat forecast for the current quarter.

The company earned $8.8 billion during the year on 10% higher revenue of $126 billion. Operating margin increased 0.3 percentage points to 9.1%.

In the fourth quarter, revenue was 8% higher year-on-year at $33.3 billion, while profit increased 5% to $2.5 billion.

Total PC unit shipments grew 2%, and HP said it maintained its market lead during the quarter. A larger portion of earnings came from the corporate sector – commercial client revenue rose 20% while consumer revenue sank 10%. Desktop sales increased while notebook revenue fell.

The acquisition of routing and switching firm 3Com, which closed in April, helped HP grow networking sales 227% year-on-year. Revenues at HP's enterprise storage and servers business swelled 25% to $5.3 billion.

Revenue from Asia grew 8% to $5.8 billion during the quarter. Adjusted for exchange rates, Asian revenue grew 3%.

The company beat estimates with its guidance for the current quarter, which includes the crucial holiday sales period.

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