Hp invents
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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 & Printing6.067 billion 3% increase

  • HP Financial Services555 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 million1.8%

  • HP Services 281 million7.4%

  • Personal Systems 147 million2.1%

  • Imaging & Printing 932 million15.4%

  • HP Financial Services45 million8.1%

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


Hp v industry sector

HP v. Industry/Sector

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


When compared to dell

When Compared to Dell…

HP Invents


Quick ratios

Quick Ratios

HPQ Dell

  • Debt to Assets0.50660.7206

  • Debt to Equity1.02702.5800

  • Working Capital14.313 billion2.761 billion

  • Effective Tax Rate14.18%31.54%

  • ETR 5yr Average16.45%29.68%

HP Invents


S p evaluation

S&P Evaluation

HPQDELL

  • Earnings and Dividend Rank A-B+

  • Fair Value Rank4+5+

  • Investability Quotient95100

  • Technical EvaluationBullish*Bearish**

  • Relative Strength Rank84%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


Hp invents

Questions??

HP Invents


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