HP posts strong results for Q1
HP yesterday reported an upbeat profit report and forecast. As the whole tech sector in the US has been struggling, with even Google seeing a 5% drop in its share price over worries that online advertising would be cut HP’s results were very important for the whole sector because their product spreads across PC’s, Servers, Storage and of course Printing.
They reported a 38 percent profit rise over the period, showing that they were managing very well through a difficult economy due partly to strong sales in overseas markets, which account for moe than two-thirds of total revenue.
Notebook comuters, server computers and software all showed revenue improvement, although the printer division showed some weakeness where consumer usnit sales fell 2 percent, although overall revenue rose in the division.
HP was helped by cost cust and strong sales abroad as US tecnology spending slowed on recession concerns. But HP faces a tougher environment this year as consumers and companies reduce spending on technology hardware and competition with a resurgent Dell, the number two PC maker hots up.
The imaging and printing group, which includes printers and printer supplies had revenue growth of 4 percent, to $7.3 Billion, and an operating margin of 15.7 percent, up from the earlier periods 15.3 percent.
We will be seeing all of the major printer manufactueres reporting during the next few weeks, and I would expect that HP will be strongest amongst them all. Interesting times that we live in!.
