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HP Invents:. Financial Analysis for the Savvy Investor. Corporate Objectives. Provide products, services and solutions of the highest quality and deliver more value to our customers that earns their respect and loyalty.

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Hp invents

HP Invents:

Financial Analysis for the Savvy Investor

HP Invents


Corporate objectives
Corporate Objectives

  • Provide products, services and solutions of the highest quality and deliver more value to our customers that earns their respect and loyalty.

  • Achieve sufficient profit to finance our company growth, create value for our shareholders and provide the resources we need to achieve our other corporate objectives.

  • View change in the market as an opportunity to grow; to use our profits and our ability to develop and produce innovative products, services and solutions that satisfy emerging customer needs.

HP Invents


Strategic areas of involvement
Strategic Areas of Involvement

  • Imaging and Personal Systems Group (IPSG)

  • HP Financial Services (HPFS)

  • Corporate Investments

  • Technology Solutions Group (TSG)

    • Enterprise Storage and Servers (ESS)

    • HP Services (HPS)

    • Software

HP Invents


Products and services
Products and Services

  • Personal Computers and Access Devices

    • Apple IPod – by HP

  • Notebooks

  • IT Infrastructure

    • New Contract with NASDAQ

  • Global Services

  • Imaging and Printing

    • Relationship with Dreamworks (Shrek 2, et al.)

    • Relationship with National Gallery, London, to

      preserve Master Pieces

HP Invents


Competitors
Competitors

  • Dell

  • Lexmark

  • Xerox

  • Veritas

  • IBM

  • BMC Software, Inc.

HP Invents


Risks
Risks

  • The ability to develop, manufacture and market products and services that meet customer requirements for innovation and quality.

  • The ability to effectively manage the transition of the company’s products and services due to technological innovations.

  • The ability to continue to license and enforce the company’s intellectual property rights on which the business depends.

  • The stability of general economic conditions, including but not limited to, foreign currency exchange rate risk.

HP Invents


The old guard
The Old Guard

  • Carleton S. Fiorina – Former

    Chairman and Chief Executive

    Officer (1999-2005)

  • Primarily responsible for the 2002 acquisition of Compaq

  • January 24, 2005 – Management reorganizes, redistributing some of Fiorina’s day-to-day responsibilities

  • February 9, 2005 – Fiorina Resigns

HP Invents


The new guard
The New Guard

  • Mark Hurd – New Chief

    Executive Officer and President,

    as of 3/29/05.

  • Previously spent 25 years with NCR Corp., culminating in two-year tenure as CEO

  • As CEO of NCR, generated 6.0 billion in revenue in fiscal year 2004, up 7 percent from ’03, and net income rose nearly fivefold to 290 million.

HP Invents


Hp financial data
HP Financial Data

HP Invents


Fy 2004 revenue report
FY 2004 Revenue Report

Actual Revenue ’05Y/Y Increase

  • Storage & Servers 4.047 billion 9% increase

  • HP Services 3.815 billion 20% increase

  • Software 240 million 18% increase

  • Personal Systems 6.873 billion 11% increase

  • Imaging & Printing 6.067 billion 3% increase

  • HP Financial Services 555 million 26% increase

  • All increases are from FY 2003

HP Invents


Fy 2004 profit report
FY 2004 Profit Report

Profit% Profit Inc. from ‘03

  • Storage & Servers 71 million 1.8%

  • HP Services 281 million 7.4%

  • Personal Systems 147 million 2.1%

  • Imaging & Printing 932 million 15.4%

  • HP Financial Services 45 million 8.1%

HP Invents


2005 statements
2005 Statements

  • Q1 2005 Revenue of 21.5 billion, a 10% increase from Q1 2004

  • HPQ estimates Q2 revenue to be between 21.2 – 21.6 billion

  • HPQ estimates Q2 non-GAAP Earnings Per Share to be 0.35 – 0.37

HP Invents



The buzz on the street
The buzz on the street…

  • DELL stock is down 8% in the year to date

  • HPQ stock has seen an 11% increase since naming Mark Hurd the new CEO on March 29, 2005

  • DELL has scaled back their estimated 2005 growth rate

  • DELL’s goal is to achieve 80 billion dollars of annual revenue by 2007… HPQ already exceeds that amount.

  • First Albany Analyst Services upgraded HPQ to a buy rating and estimates a $25 price target

  • HPQ was just awarded a 5 year contract with the United States Air Force

HP Invents



Quick ratios
Quick Ratios

HPQ Dell

  • Debt to Assets 0.5066 0.7206

  • Debt to Equity 1.0270 2.5800

  • Working Capital 14.313 billion 2.761 billion

  • Effective Tax Rate 14.18% 31.54%

  • ETR 5yr Average 16.45% 29.68%

HP Invents


S p evaluation
S&P Evaluation

HPQDELL

  • Earnings and Dividend Rank A- B+

  • Fair Value Rank 4+ 5+

  • Investability Quotient 95 100

  • Technical Evaluation Bullish* Bearish**

  • Relative Strength Rank 84% 48%

  • * S&P Star Report has ranked HPQ bullish since March 2005

  • ** S&P Star Report has ranked DELL bearish since February 2005

HP Invents


6 month stock performance hp v dell v djia
6 Month Stock Performance: HP v. Dell v. DJIA

HP Invents


Comparisons
Comparisons

HP Invents


Why hp
WHY HP?

  • HP Makes More Things More Possible

  • HP is the leader in the Science of almost Limitless Possibilities

  • Because With HP -

Everything Is Possible!

HP Invents


Questions??

HP Invents


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