Analyst Richard Stice says January quarter results reflect the overall consistency of HP's offerings. Plus: comments on Dell, JetBlue, and moreHewlett-Packard (HPQ): Reiterates 3 STARS (hold)
Analyst: Richard Stice
HP posts January quarter operating earnings per share (EPS) of 65 cents, vs. 48 cents a year ago, 4 cents above our estimate. Revenue rose 11%, boosted by 57% unit growth in notebooks. We are raising our fiscal year 2007 (Oct.) EPS estimate by 11 cents to $2.64. We believe January quarter results reflect the overall consistency of HP's offerings, as well as its success with expense controls. However, we believe these factors are fully reflected in the current share price. In addition, the shares trade at a modest premium to the S&P 500 on a price-to-earnings basis. As a result, we would not add to existing positions. Our 12-month target price is $45.
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