Business News
HP Well-positioned for Growth in Expanding Global IT Market
Tuesday 29. September 2009 - Company provides fiscal 2010 outlook at Securities Analyst Meeting
At its Securities Analyst Meeting today, HP addressed how it is uniquely positioned to grow and expand in the global information technology market.
With its unmatched portfolio, scale, global footprint and efficient cost structure, HP is poised to gain share while extending its reach into margin-accretive markets.
“We expect the IT industry to return to growth in 2010 and believe that HP will outpace the market,” said Mark Hurd, HP chairman and chief executive officer. “Our broad product and services portfolio and global scale give HP a clear competitive advantage. As a result, we see tremendous opportunity to grow our business and improve earnings while delivering value to our customers.”
At the meeting, HPs senior executive leaders provided updates on the companys continued efforts to capture market share and take advantage of secular trends, including a movement toward converged devices and infrastructure as well as a transformation in printing from analog to digital.
With the industrys broadest portfolio, HP is in a superior position to help customers manage and transform their technology systems and operations. The company plans to continue to leverage the acquisition of EDS to expand margins and market share with growth in services as well as new hardware and software sales.
Fiscal 2010 outlook
Cathie Lesjak, HP executive vice president and chief financial officer, provided HPs outlook for fiscal 2010. For the full fiscal year, HP expects revenue of approximately $117.0 billion to $118.0 billion, GAAP diluted earnings per share (EPS) in the range of $3.60 to $3.70, and non-GAAP diluted EPS in the range of $4.20 to $4.30. This non-GAAP diluted EPS estimate excludes after-tax costs of approximately $0.60 per share, related primarily to amortization of purchased intangibles, restructuring charges and acquisition-related charges.
Looking forward, HP sees significant opportunities to invest in innovation and sales to expand its portfolio and market coverage. HP plans to improve margins, given its operating leverage on a leaner cost structure, while continuing to invest for growth.