To: stock leader who wrote (117743 ) 11/30/2000 10:23:07 PM From: puborectalis Respond to of 120523 HP Sticks To Earnings Guidance (11/30/00, 4:54 p.m. ET) By Mark Hachman, TechWeb Finance Hewlett-Packard Co. reiterated on Thursday its financial guidance for the first quarter of fiscal 2001 as well as the entire fiscal year, an indirect response to the earnings warning issued by Gateway Inc. HP (stock: HWP) said it is “comfortable” with the consensus analyst estimates for the first quarter of fiscal 2001, which peg the company's earnings at 44 cents per diluted share. For the entire 2001 fiscal year ending Oct. 31, 2001, HP said it expects to achieve revenue growth in the range of 15 percent to 17 percent; gross margin percentage in the range of 27.5 percent to 28.5 percent; and total operating expenses at around 10 percent to 12 percent above the 2000 fiscal year. "Unlike some of our competitors, HP is far more than a U.S.-centric, consumer-PC company, with less than 10 percent of our business in this segment," Carly Fiorina, HP chairman, president and chief executive officer, said in a statement. "HP's global and product diversification is a significant competitive advantage which we believe will prove increasingly valuable as it serves to insulate us from the effects of individual market downturns." Fiorina said she expects the Internet infrastructure and printing businesses to drive growth during fiscal 2001. "We experienced growth of nearly 60 percent in our U.S. retail PC business in fiscal 2000, in part due to significant gains in market share as several large players exited the market," she said. "We foresaw a significantly different market environment in 2001, and accordingly planned for only single-digit growth in our U.S. retail PC business." HP said sales over the Thanksgiving weekend were ahead of last year, an indirect response to the drastically reduced guidance consumer PC maker Gateway (stock: GTW) issued Wednesday.