Beyond the PR Nightmare: EarningsBy Reuters | Posted 2010-11-17 Email Print
In spite of the drama swirling around technology giant HP over its ousting of CEO Mark Hurd and hiring of ex-SAP CEO Leo Apotheker, the company is expected to report a strong quarter. Meanwhile, rival Dell's quarter is more in question as industry watchers caution on Dell's reliance on government spending at a time when such spending appears to be slowing.
Public relations aside, HP will provide a snapshot of global IT demand when it reports results next Monday. The world's largest tech company by revenue has hinted at a solid upcoming year and has stressed its investments after years of cost-cutting under Hurd.
For the fiscal fourth quarter ended Oct. 31, Wall Street expects HP to report earnings of $1.27 a share on revenue of $32.8 billion. HP has beaten or matched analysts' earnings estimates every quarter over the past two years.
Although HP lost two percentage points of personal computer market share in the July-September period according to IDC, its operating margin should benefit from improved component costs.