Replies to post #207457 on Zeev's Turnips Patch-No Politics (ZEEV)

[ChrisJP]

Hi marketmaven -- HPQ didn't look like a "big miss" to me.

But maybe the good news is already built into the stock price.

Chris

[marketmaven]

HPQ- Lousy Qtr- Nothing but air to $19
ZERO momentum, cut costs to "make" qtr, sharp fall in OCF, charges coming in consulting HC reductions, GMgn pressure

* IT Spending forecast of +1-2% in 2004
* Revs up 1% w/o currency gain, down 7% in Japan
* ALL operating profit from Imaging & Printing Group (IPG) where Gmargins are coming under pressure, sales/OI up just 6%
* Personal Systems Group (PSG) OMgns just 1%, PC sales slow in Jan and -10% price erosion in notebooks where HPQ led
* Enterprise Systems Group (ESG) saw revs -4% Y-Y, storage down 2% (weak high end and tape), just 3% OMgns, SW losses
* HP Services (HPS) Terrible as GMgns fell 3% to 8.2% from new Managed Services contract wins, headcount cuts coming in Consulting and Integration (revs -12%, even with currency benefit)due to lengthening procurement cycles and a falloff in renewal rates
* Operating Cash Flow DOWN $1B due to $270m in restructuring costs and +$396m in inventory build (forward buying of flat panel displays and related components), while capex was just $290m