HP is confident that the IT market will return to growth soon, and has positioned itself to take avantage of new opportunities.
At its Securities Analyst Meeting yesterday, HP addressed how it is positioned to grow and expand in the global IT market.
“We expect the IT industry to return to growth in 2010 and believe that HP will outpace the market,” says Mark Hurd, HP chairman and CEO. “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, HP’s senior executive leaders provided updates on the company’s 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 a broad product portfolio, HP is in a 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.
Cathie Lesjak, HP executive vice-president and chief financial officer, provided HP’s outlook for fiscal 2010.
For the full fiscal year, HP expects revenue of approximately $117-billion to $118-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.
The company plans to improve margins, given its operating leverage on a leaner cost structure, while continuing to invest for growth.