Hewlett-Packard Co. offered a bright financial outlook on Tuesday without discussing queries on the issue of the identity of the world's largest technology company’s next CEO.
The leading maker of personal computers and printers, Hewlett Packard Co. has been looking for a new leader since Mark Hurd’s pressured exit after having served the company as the CEO for five years.
The company's interim CEO, Cathie Lesjak, told analysts that HP's per-share earnings for its fiscal year ending in October 2011 is expected to range from $5.05 to $5.15, excluding certain accounting items related to its recent acquisition spree. As per the estimate, the figures would be up by 14 percent from the present fiscal year and ahead of the average estimate of $4.99 per share among analysts polled by Thomson Reuters. Revenue earn in the next year is expected to touch a total of $131.5 billion to $133.5 billion, an increase of 5 percent to 7 percent. Analysts were looking for $131.4 billion in revenue.
The estimated revenue and share projections reflect HP's confidence about boosting profit margins as it expands into consulting services, computer security and storage while maintaining leading the market space for PCs and printers. The company is also hoping to grab market share through acquisitions, having already spent about $31 billion buying 35 companies in the past four years.
Recently with Palm Inc’s acquisition, HP plans to introduce the operating system for a computer tablet which would compete against Apple Inc.'s popular iPad. HP spent $1.8 billion to snap up the long-struggling Palm.
HP shares gained 36 cents to close on Tuesday at $41.62, then added another 42 cents in extended trading.
The Palo Alto based company anticipates a "robust" recovery in its stock price next year, Lesjak said. If the shares remains blench, HP plans to buy back more of its stock in an effort to boost the price.
Further, the company also showed a glimpse of the eligible managers who could take up the vacant position by Hurd’s exit, the candidates include Todd Bradley, who oversees HP's personal computer division; Ann Livermore, who runs the company's rapidly expanding technology services; and Vyomesh "VJ" Joshi, who steers HP's highly profitable printer-ink operations. Analysts are of the opinion that Bradley would be the front-runner if HP promotes from its own ranks.
