Earning briefs for February 20, 2004

Friday, Feb. 20, 2004 | 11:27 a.m.

Analysts cautious despite profit

SAN JOSE, Calif. -- Hewlett-Packard Co.'s quarterly earnings jumped 30 percent and the computer giant met Wall Street expectations Thursday, but analysts remained cautious about the company's outlook in the midst of a prolonged downturn and tepid corporate spending.

For the three months ended Jan. 31, HP reported a profit of $936 million, or 31 cents per share, compared with $721 million, or 24 cents per share, in the same period last year.

Excluding special items, Palo Alto, Calif.-based HP earned $1.08 billion, or 35 cents per share. That compared with $877 million, or 29 cents per share, a year earlier. The results matched the estimate of analysts surveyed by Thomson First Call.

First-quarter 2004 revenue was $19.51 billion, up 9.2 percent from $17.88 billion in the first quarter of 2003.

Carly Fiorina, HP's chairwoman and chief executive, characterized the first quarter as "solid," crediting record first-quarter printer sales. HP sold $5.91 billion in printers, ink cartridges, paper and related products in the first quarter of 2004, up 5.6 percent from the same period of last year.

Retailer's profit soars 21 percent

MINNEAPOLIS -- Target Corp., the second-largest U.S. discount retailer, Thursday said fourth-quarter earnings increased 21 percent, helped by lower costs and shoppers buying more DVD players and digital cameras during the holiday season.

Net income rose to $832 million, or 91 cents a share, from $688 million, or 75 cents, a year earlier. The increase was the biggest in five quarters. Total sales, including revenue from credit cards, in the quarter ended Jan. 31 climbed 11 percent to $15.6 billion, Target said in a statement. Sales at stores open at least a year rose 4.9 percent.

Target's discount stores enticed shoppers with $150 digital cameras and free $10 gift cards with some toy purchases. Interest expenses fell 16 percent. Chief Executive Robert Ulrich kept inventory lean to limit promotions as he tries to maintain Target's image as a place for bargains on trendy clothes and goods, such as teakettles designed by architect Michael Graves.

"The sales would indicate that people are still excited by the products they're seeing in the store," said David Keuler, who helps manage $56 billion at Milwaukee-based Mason Street Advisors, including about 2 million Target shares.

Profit rises

SEATTLE -- Nordstrom Inc., the upscale department store chain, Thursday said fourth-quarter earnings jumped 74 percent, exceeding analysts' estimates, as sales rose at the fastest pace in more than three years and relied less on clearance discounts.

Net income rose to $104.3 million, or 74 cents a share, from $60 million, or 44 cents, a year earlier. Sales in the period ended Jan. 31 increased 10 percent to $1.93 billion, the Seattle-based retailer said in a statement. Sales at stores open at least a year rose 8.5 percent, more than twice the retailer's expectations.

Holiday shoppers splurged on shoes, cosmetics and handbags amid easing concerns about jobs and the economy.