Since Quarter 1 earnings have come out for Hewlett Packard and I have re-evaluated the stock and downgraded from out-perform to just perform. The new target price based off my new valuations will be $54.32 per share from the previous valuation of $57.26 per share. This is based off poor guidance set forth by Hewlett Packard during the conference call about discussing earnings for the quarter. As well as delay in new products offered and sluggish performance in sales to commercial clients being down 12%.
Chris Whitmore, analyst at Deutsche Bank.
"We believe it could be a rocky road going forward as the transition to a revenue-driven story will likely take considerable time,"
A Huge Disappointment is the delay in the debut of the Webos Touchpad the "Timing of all our WebOS products (and) Wi-Fi version of TouchPad available in summer in the US, and rest of the world in the fall." This has already been delayed tremendously. It will be very difficult HP to gain strong makret share while Apple will most likely have their second generation Ipad out by then.
Jonathan Wiener
Showing posts with label hpq. Show all posts
Showing posts with label hpq. Show all posts
Thursday, February 24, 2011
Wednesday, February 23, 2011
Hewlett Packard Earnings HPQ, Q1
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.
Jonathan Wiener
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.
Jonathan Wiener
Wednesday, January 5, 2011
Hewlett Packard: On the Rise
Since the acquisition of Hewlett Packard in the portfolio the company has had many newsworthy actions that support the purchase of the stock. It has has been on the rise and closed today at $44.17 (January 5th 2011).
Positives:
The main risks going into this new fiscal year was whether or not Hewlett Packard was going to maintain its strong sales ability in renewing and obtaining new contracts. Since the beginning of the fiscal year they have received contracts summing in the multi-billions of dollars. A note-able contract was with NASA beating out Lockhead Martin, the HP Enterprise Services won a $2.5 billion contract to manage, secure, and maintain its IT infrastructure across all of the agency’s research and flight centers. The program is called Agency Consolidated End-User Services, or ACES, and stretches out over 10 years. Currently Hewlett Packard ranks No. 12 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.
RBC Capital analyst Amit Daryanani writes in a report that came out January 3 that 2011 he assigns HPQ an Outperform rating and a $57 price target.
Hewlett-Packard on tuesday January 4th 2010 announced a netbook with some cutting-edge mobile broadband and graphics technologies that could make it the most powerful netbook yet. The lightweight Pavilion DM1 netbook comes with an 11.6-inch screen, and runs on Advanced Micro Devices' new Fusion processor, which bundles a graphics chip and CPU into a single piece of silicon. The DM1 runs for a maximum of 10.5 hours with solid-state drive storage, and 9.5 hours on hard drive storage. This Netbook will be have the capability to be on wireless LTE (long-term evolution) mobile broadband networks, which offer faster data transfers than current 3G networks.(Rumored with Verizon but could possible be with another network.)
Negatives:
Chief Marketing Officer Michael Mendenhall resigned and is going to be replaced by SAP V.P. Bill Wohl. There is no definite reason for mendhalls leaving as of yet but this will sure stir up some controversy.
Events:
HP has invited the press to a WebOS announcement which will not be at CES but on Feb. 9. "The wording of the invite also hints there may be more than one device presented."
-Jonathan Wiener
Positives:
The main risks going into this new fiscal year was whether or not Hewlett Packard was going to maintain its strong sales ability in renewing and obtaining new contracts. Since the beginning of the fiscal year they have received contracts summing in the multi-billions of dollars. A note-able contract was with NASA beating out Lockhead Martin, the HP Enterprise Services won a $2.5 billion contract to manage, secure, and maintain its IT infrastructure across all of the agency’s research and flight centers. The program is called Agency Consolidated End-User Services, or ACES, and stretches out over 10 years. Currently Hewlett Packard ranks No. 12 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.
RBC Capital analyst Amit Daryanani writes in a report that came out January 3 that 2011 he assigns HPQ an Outperform rating and a $57 price target.
Hewlett-Packard on tuesday January 4th 2010 announced a netbook with some cutting-edge mobile broadband and graphics technologies that could make it the most powerful netbook yet. The lightweight Pavilion DM1 netbook comes with an 11.6-inch screen, and runs on Advanced Micro Devices' new Fusion processor, which bundles a graphics chip and CPU into a single piece of silicon. The DM1 runs for a maximum of 10.5 hours with solid-state drive storage, and 9.5 hours on hard drive storage. This Netbook will be have the capability to be on wireless LTE (long-term evolution) mobile broadband networks, which offer faster data transfers than current 3G networks.(Rumored with Verizon but could possible be with another network.)
Negatives:
Chief Marketing Officer Michael Mendenhall resigned and is going to be replaced by SAP V.P. Bill Wohl. There is no definite reason for mendhalls leaving as of yet but this will sure stir up some controversy.
Events:
HP has invited the press to a WebOS announcement which will not be at CES but on Feb. 9. "The wording of the invite also hints there may be more than one device presented."
-Jonathan Wiener
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