INSTANT VIEW: Hewlett-Packard results beat Street

SAN FRANCISCO (Reuters) - Hewlett-Packard Co, the world's biggest computer maker, reported quarterly profit and revenue ahead of Wall Street targets on Tuesday thanks to strong international sales in its notebook computer and printer businesses.

Shares rose 2.8 percent as the company also forecast earnings in the current quarter ahead of the average Wall Street target, according to Reuters Estimates.

COMMENTARY:

JASON PRIDE, DIRECTOR OF RESEARCH, HAVERFORD TRUST CO, PHILADELPHIA

"They seem to be a standout. The only other company that has a similar ability to stand out is IBM, but that's a very different story, a story of transitioning to a more service-oriented approach. But HP is still primarily a hardware provider, and in that space, they are absolutely a standout.

"What we're seeing here is that despite the concerns we had coming into the third quarter, they are not being overwhelmed by a currency hit yet. They seem to be getting good growth from their enterprise business and from global positioning. They're getting stronger sales from outside the U.S. But if exchange rates stay where they are now, that's a headwind for the next three quarters."

LOU MISCIOSCIA, ANALYST, COWEN & CO.

"Many had expressed concerns that HP's results were going to start to be affected by the economy, but HP had solid numbers. The results look very solid. They might not talk about fiscal '09 but everything looks intact for fiscal '08."

BRENT BRACELIN, ANALYST, PACIFIC CREST SECURITIES

"Not many material surprises - either upside or downside.

"Obviously revenue came in a little better, but obviously that was at the expensive of the margins. Margins unexpectedly declined in their printer division, in their server division and their software division. That kind of offset a portion of the upside."

"They are guiding to a slowdown in growth - from 9 percent to 7 percent. That is basically in line with what the Street was expecting."

"Obviously big investor concern is integration of the EDS acquisition. But fundamentals are holding here for what is the largest technology supplier in the world."

WILLIAM RUTHERFORD, PRESIDENT, RUTHERFORD INVESTMENT MANAGEMENT, PORTLAND, OREGON

"I believe the Street was expecting them to beat, and it would appear that they have a solid outlook for Q4.

"Overall its a good report but I believe the outlook still remains cloudy. As far as the outlook goes, they're going to obviously see some impact from the rising dollar. That is going to influence their overseas revenue and will have some impact on their bottom line going forward, but it's difficult to assess.