HP yesterday announced financial results for its fourth fiscal quarter ended Oct. 31, 2008, with net revenue of 33.6 billion dollars, up 19% from a year earlier and up 16% when adjusted for the effects of currency. Excluding EDS revenue, net revenue grew 5% year over year or 2% when adjusted for the effects of currency.
According to Mark Hurd, HP chairman and chief executive officer, HP capped off a strong year by delivering another solid quarter led by strength in services segment and disciplined expense management.
"Our global reach, broad portfolio, numerous cost initiatives and consistent execution differentiate HP in the current economic environment," said Hurd.
When adjusted for the effects of currency, revenue grew 17% in the Americas, 15% in Europe, the Middle East and Africa and 12% in Asia Pacific. Revenue from outside of the United States in the fourth quarter accounted for 68% of total revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) growing 23% over the prior-year period and accounting for 9% of total revenue.
Outlook
In providing its outlook for the first fiscal quarter and full year 2009, the company has taken into consideration the current challenging economic environment and the relative strength of the U.S. dollar. Based on current exchange rates, the company now expects an unfavorable year-over-year currency impact on revenue of approximately 5 percentage points in the first quarter and roughly 6-7 percentage points for the full fiscal year and this impact is reflected in its outlook.
For the first fiscal quarter of 2009, HP expects revenue of approximately 32.0 billion dollars to 32.5 billion dollars, GAAP diluted EPS in the range of 0.80 dollars to 0.82 dollars, and non-GAAP diluted EPS in the range of 0.93 dollars to 0.95 dollars. Q109 non-GAAP diluted EPS estimates exclude after-tax costs of approximately 0.13 dollars per share, related primarily to the amortization of purchased intangibles.
For the full fiscal year 2009, HP expects revenue of approximately 127.5 billion dollars to 130.0 billion dollars, GAAP diluted EPS in the range of 3.38 dollars to 3.53 dollars, and non-GAAP diluted EPS in the range of 3.88 dollars to 4.03 dollars. FY09 non-GAAP diluted EPS estimates exclude after-tax costs of approximately 0.50 dollars per share, related primarily to the amortization of purchased intangibles. |
