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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 25.28-3.8%Nov 10 3:59 PM EST

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To: Lynn who wrote (3947)5/17/2006 7:33:47 AM
From: Lynn   of 4345
 
S&P MAINTAINS HOLD OPINION
ON SHARES OF HEWLETT
PACKARD CO.
Recent Price : $31.11
Recommendation:
Apr-Q EPS of $0.54 vs. $0.37 exceeds our $0.48 estimate, driven largely by better gross margin, though
non-operting income also added to the upside. Revenues grew 5%, in line with our forecast, led by
strength in the Americas, in notebooks, and in supplies. Still, 2% growth in its enterprise business was
somewhat disappointing to us. While guidance for July-Q revenues was slightly below our model, we are
raising our FY 06 (Oct.) EPS estimate by $0.10 to $2.05 to reflect the better margin performance. At
price/sales of 1X, in line with peers, we view HPQ as fairly valued.
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