Before today's announcement, analysts had been expecting the company show earnings of $1.00 a share when it announces its official numbers next Monday (Nov. 24), but the company stated today it is now expecting to show adjusted earnings of $1.03.
The decision to lift its forecast has resulted in some nice gains for HPQ shareholders today, as the stock has traded up 10.5% to $32.41, and earlier in the session hit an intraday high all the way up at $33.84.
According to today's announcement, the company is benefiting from "global reach, diverse customer base, broad portfolio and numerous cost initiatives."
Should the company actually be able to pull off its increased earnings estimate, it will be a rarity in the industry. Several other main tech companies have been getting hit lately, as the economic slowdown has applied the brakes to consumer and business spending. Earlier this month, Cisco Systems (NASDAQ: CSCO) warned that its sales numbers for October were weak, and that the current quarter will also show weakness. Last week, the company came out and slashed both revenue and earnings forecast for its fourth quarter.
H-P will be releasing its official numbers next Monday, and I will be sure to update you on just how strong the company's fourth quarter really was.
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.