Hewlett-Packard hikes 2Q guidance
Hewlett-Packard Co.'s turnaround efforts are paying off as the computer and printer maker said it is poised to bulldoze its earlier quarterly earnings targets and rake in an extra $1 billion in sales than previously expected.
The raised outlook sent shares up 2.8 percent Tuesday and underscored HP's market gains against Dell Inc. and others. It also helped mitigate some concerns of inventory buildup and increased competition.
Some analysts think HP, which has been working to slash costs and streamline its businesses under the regime of CEO Mark Hurd, has yet to reach its financial peak.
"Over the last two years, HP has been focused on improving itself, becoming leaner and stronger," said American Technology Research analyst Shaw Wu. "And now we're seeing the fruits of its work."
HP boosted its second-quarter forecast on Tuesday, citing strong results in its personal computer and server businesses.
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