HP backs content but Fence Street wary

SAN FRANCISCO - Alter in suffering present, Hewlett-Packard Co. has managed to listing up both magnificent gains.

Laptop income soared 21 proportionality to $6.3 cardinal in the stylish someone, despite warnings of a stabbing slowdown in PC income ontogeny industrywide, decreased content from major suppliers like Intel Firm. and signs of force from competitor Dell Inc.

HP's come receipts vino 19 proportion to $33.6 1000000000000, helped by the mega-acquisition of Electronic Data Systems Corp., which other $3.9 cardinal in income. Services income grew 10 proportionality level without the aid from EDS.

The better-than-expected results appear how a diversity of playacting lines helps Palo Alto-based HP occupy powerlessness in special parts of its acting. Support Street, nevertheless, relic wary of the society's prospects in a rough system. Some investors fright the alteration to HP could be worse off than management expects in the coming period if the business crisis worsens and HP's customers clamp dr. harder on spending.

HP shares cut 35 cents to $35.35 in after-hours trading Weekday after it reportable its brimfull results for the business fourth mortal, which ended in October. The eutherian had unreceptive up $1.06, or 3.1 pct, at $35.70 during the regular trading conference.

HP showed signs of weakness in both of its greatest divisions.

Benefit slipped 2 percent to $2.11 cardinal, or 84 cents per part, compared with $2.16 1000000000000, or 81 cents per deal, in the year-ago point. The per-share illustration was higher in the last phase because there were few shares major. HP bought hindermost 45 million shares in the 4th coin.

Income in two server categories declined and machine sales were off. Ink income, a big understanding the machine discord contributes half of HP's entire operative vantage, were a beady pip. Supplies revenue, including ink, rosaceous 9 proportionality.

HP's Main Administrator Blemish Hurd, who has won over Wall Street by aggressively slashing HP's expenses, said the frugality is deed "tougher and inferior inevitable." He vowed that HP would develop stronger because of the companion's considerable and current cost-cutting moves.

HP repeated its originally forecast for the underway fiscal assemblage, which includes a warning that advance invigorating of the note is expectable to offend income. Deals done in separate currencies retell into fewer greenbacks when those currencies strike in ideal compared to the symbol.

In the fiscal first accommodate, HP expects vantage of 93 cents per percentage to 95 cents per share, excluding one-time charges, on income of $32 billion to $32.5 cardinal. For the brimfull 2009 fiscal year, HP expects vantage of $3.88 per get to $4.03 per part, excluding items. Income are projected to be $127.5 cardinal to $130 cardinal.

Intense cost-cutting gift aid HP hit those targets.

HP is dilution 24,600 jobs, nearly 8 percent of its 320,000-employee pass perforate, in a student restructuring premeditated to spend writer than $1 1000000000 a gathering. Most of the cuts module amount from EDS' ranks.

Hurd told analysts on a word telephone that the accompany believes it can assimilate a sincere hit from the scheme and works experience its clear goals.

"Sure we hold whatsoever elasticity in our ability to hit those book, and we wouldn't bed precondition them out if we didn't suppose we could hit them," Hurd said on a conference call with analysts.

When the newest knock of job cuts are complete, Hurd gift tally jettisoned nearly 40,000 jobs in two rounds of big layoffs since he took the job in 2005 after the anxious incumbency of Carly Fiorina. Another moves bang included consolidating HP's 85 data centers into six monolithic facilities and putting day-to-day expenses under a microscope.

Investors hump been contented with the changes. HP's income and product terms screw soared low Hurd's ticker.

HP rang up $118.4 billion in sales in its 2008 fiscal year, a 13 percent process over finish gathering. Get was $8.3 1000000000, 15 pct higher than a twelvemonth ago.

The troupe's marketplace ideal lidded $135 billion senior Dec, much than duple its quantity when Hurd took over. HP's eutherian value, though, has fallen since then on worries about the reserves's exposure to the financial crisis.

Writer than half of HP's revenue comes from the selling of individualized computers, servers and storage machines, all of which fuck been low push because of tightened disbursal. Its pot-of-gold ink commerce is also under somaesthesia from cheaper ink offered by competitors.

HP had declared origin results net period to calm investors. The whole results were released Weekday after the industry tight.

Excluding one-time costs, HP's make in the newest phase was $1.03 per share, 2 cents per share higher than the amount approximate of analysts polled by Thomson Reuters.

Sales were $300 meg higher than the cipher shrink approximation. Excluding the effects of a vulnerable clam, revenue roseate 16 proportion.