On May 16, PC hardware and software maker Hewlett-Packard
- Revenues increased by 13%, driven primarily by a 24% increase in the Personal Systems Group and a 58% rise in HP Software revenues.
- Management estimates that Q3 revenue will be approximately $23.7 billion-$23.9 billion, and that total 2007 revenues will be in the range of $100.5 billion-$100.9 billion. EPS, meanwhile, is expected in the range of $0.60 to $0.61 for the quarter, and $2.51 to $2.53 for the full year.
- In Motley Fool CAPS, the stock carries a middling three-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Sales |
$25,534.0 |
$22,554.0 |
13.2% |
Net Profit |
$1,775.0 |
$1,899.0 |
(6.5%) |
EPS |
$0.65 |
$0.66 |
(1.5%) |
Diluted Shares |
2,731.0 |
2,887.0 |
(5.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
24.5% |
24.8% |
(0.3) |
Operating Margin |
8.3% |
7.4% |
1.0 |
Net Margin |
7.0% |
8.4% |
(1.5) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$12,310.0 |
$14,044.0 |
(12.3%) |
Accounts Rec.* |
$14,109.0 |
$12,323.0 |
14.5% |
Inventory |
$7,278.0 |
$6,768.0 |
7.5% |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable |
$11,505.0 |
$10,077.0 |
14.2% |
Long-Term Debt |
$3,977.0 |
$2,406.0 |
65.3% |
Learn the ways of the balance sheet.
Cash Flow Highlights
YTD 2007 |
YTD 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$4,139.0 |
$5,480.0 |
(24.5%) |
Capital Expenditures |
$1,476.0 |
$948.0 |
55.7% |
Free Cash Flow |
$2,663.0 |
$4,532.0 |
(41.2%) |
Free cash flow is a Fool's best friend
Related Foolishness:
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