Hewlett Packard opened today down 11% based off of poor revenue from this past quarter and a poor outlook for Q2 presented by HP. HP missed ours and other analysts experts by a considerable amount. HP's guidance for the current quarter, when compared to the first fiscal quarter, is the lowest in nine years, other than in 2009, which was the height of the economic recession. It is expecting revenue to be 31.4 - 31.6 billion making it over 1 billion off our estimates. Net income for the quarter ended 1/31 and went up 16% obtaining $2.6 billion or $1.17 a share which was up from $2.3 billion or 93 cents a share based off last year. Revenue increased 4% to $32.3 billion from $31.2 billion, and gross margin rose 1.5 percentage points to 24.4%.
On the positive side HP has many new products that are going to be released in the coming year. They have the touchpad which I believe will be able to take a small share in the tablet market. With the acquisition of palm HP has decided to come out with their own line of cell phones. The most innovative release is the revitalization of their laptops since Personal computer sales have dropped this quarter this is vital for their comeback in that segment. The new laptop elite line allegedly will be able to get up 32 hrs a charge this will equate to tremendous sales if it is true.
At the moment I believe we will ride out this wave till the end of the week and I will post tomorrow with updated valuations based on the information that has been put out.