What Recession? HP Makes Bank in Q4

Posted 11/20/2008 at 8:13am | by Paul Lilly

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The DRAM industry knows well that the global economy is struggling, and so too would the processor market if not for the popularity of netbooks and Atom chip sales. But one company who apparently didn't get the memo that the economy is in shambles is Hewlett-Packard.

According to the company's fourth quarter results that were leaked on Monday, the OEM took in $33.6 billion in revenue in Q4 2008, representing a 19 percent jump from the same quarter one year ago, or 16 percent when adjusted for currency affects, Cnet says.

"HP delivered another solid quarter, as it continues to benefit from its global reach, diverse customer base, broad portfolio, and numerous cost initiatives," CEO Mark Hurd said in a statement. "Our ability to execute in a challenging marketplace differentiates HP, enabling it to increase share, expand earnings, and emerge from the current economic environment as a stronger force."

The news gives HP shareholders reason to cheer, who received $1.03 per share, excluding after-tax adjustments. Adjustments related to restructuring, in-process research development, amortization of purchased intangibles, and other acquisition-related charges knocked the figure down slightly by 19 cents per share, netting shareholders 84 cents per share.

The future looks bright as well. HP expects to pull in between $32 billion and $32.5 billion in the first fiscal quarter of 2009, and expects revenue for all of 2009 to be between $127.5 billion and $130 billion, with earnings per share between $3.38 and $3.53, or an adjusted $3.88 to $4.03.

Image Credit: Hewlett-Packard