Hewlett-Packard Company (NYSE:HPQ) Moves Up On Better Earnings Forecast
On Wednesday, Hewlett-Packard Company (NYSE:HPQ) projected its earnings for the financial year starting November and has exceeded analysts’ expectations. The Pc market has been on the downslide and the computer maker has been making every effort to keep afloat and maintain some profitability by cutting costs and also channelizing all its efforts on its more profitable businesses.
The PC market decline
Gartner and IDC, the research firms reiterated that that they strongly believe that the personal computer market will bottom out in 2013 or 2014 before it gets back on the recovery path. Hewlett-Packard Company (NYSE:HPQ) is the 2nd largest computer maker in the world.
Meg Whitman, the company’s Chief Executive said in a presentation to analysts that the company will spotlight all its efforts on new services and products next year even as it keeps a tight rein on costs under the company’s rock-solid leadership. She said that there is actually a great deal of work to be done but that she is confident about the direction that the company is heading in.
Hewlett-Packard Company (NYSE:HPQ) expects a net income of $3.55-$3.75/share in the 2104 financial year. This midpoint is 3cents above the analysts’ expectations of $3.62. The company also said that it will return at least 50% of its $US6-$US6.5B in free cash-flow to its shareholders, in 2014. This will be actioned via stock repurchases and dividends which will hike the earnings per share.
In Wednesday’s trading, Hewlett-Packard Company (NYSE:HPQ) rose by 8.92%. The opening price of the shares was $20.77, which climbed to an intraday high of $22.76 and dipped to a close of $22.60. Approximately 55.97 million shares were traded on Wednesday while an average volume of 14.52 million shares were traded over a 30 day period. The 52-week low of Hewlett-Packard Company (NYSE:HPQ) shares is $11.35 and its 52-week high is $27.78. The company has a market capitalization of $43.43 billion.