Science & Technology
Science and Technology
Science and Technology
Thu, May 20, 2010
Wed, May 19, 2010 Hewlett-Packard, Cisco, Intel, Microsoft and Eli Lilly
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Hewlett-Packard (NYSE: [ HPQ ]), Cisco (Nasdaq: [ CSCO ]), Intel (Nasdaq: [ INTC ]), Microsoft (Nasdaq: [ MSFT ]) and Eli Lilly (NYSE: [ LLY ]).
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Here are highlights from Tuesdaya™s Analyst Blog:
Hewlett-Packard Beats, Gains After Hours
Hewlett-Packard (NYSE: [ HPQ ]) did what it was supposed to do in its fiscal second-quarter report. The market wanted further evidence that the recovery for computer technology was not a fluke, but instead an indication of an improving environment. Wea™ll have to wait to be certain, but HPQ probably accomplished that, as did Cisco (Nasdaq: [ CSCO ]), Intel (Nasdaq: [ INTC ]) and Microsoft (Nasdaq: [ MSFT ]) before it.
The company earned $1.09 per share in the quarter, compared to 86 cents a year earlier. The result was 4 cents better than the Zacks Consensus Estimate; a 3.8% surprise that was on-par with the fiscal first quarter. The result continues the companya™s exceptional record of outperforming expectations.
Net revenue increased by 13% to $30.8 billion, as revenue in the Americas gained 11%, revenue in Europe, the Middle East and Africa also increased 11%, and revenue in Asia Pacific advanced 19%.
Revenue from outside the U.S. accounted for 66% of total revenue.
Hewlett-Packard now expects non-GAAP earnings per share between $4.45 and $4.50, compared to its previous outlook of $4.37 to $4.44. The Zacks Consensus Estimate is currently at $4.45 for the fiscal year ending October 2010 and $4.90 for the fiscal year ending October 2011.
Earnings Scorecard: Eli Lilly
There is a significant negative bias in earnings estimate revisions for Eli Lilly (NYSE: [ LLY ]). While all 19 analysts covering the stock have reduced their earnings estimates for fiscal 2010, 16 of the 17 analysts covering the stock have reduced their estimates for fiscal 2011.
Estimates are down for the June and Sept quarters of 2010 as well. While 12 of the 16 analysts have reduced their estimates for the June quarter over the last 30 days, only one has moved in the opposite direction. Meanwhile, 14 of the 16 analysts covering the stock have reduced their estimates for the Sept quarter with no upward revisions over the past 30 days.
About eight products, representing 74% of 2009 total revenues, are expected to lose exclusivity over the next few years. While strong sales from key products such as Cymbalta, Cialis and Alimta will be the fundamental strength to revenue growth in 2010, longer-term growth prospects remain under question especially once Zyprexa loses exclusivity in the US in 2011. Concerns remain that Lillya™s pipeline may not be sufficient to offset the impact of key patent expirations.
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