Goldman Cuts Hewlett-Packard Estimates

Analyst Laura Conigliaro says growth in consumables, which are becoming more tied into the copier giant's profit, are slowing

Goldman Sachs cut estimates on Hewlett-Packard (HWP ).

Analyst Laura Conigliaro is lowering her estimates again based on continued slowing in the company's consumables growth, combined with ongoing softness in its other businesses. She notes consumables, which normally make up 20% of Hewlett-Packard's revenues and are 55% of profits, represented over 100% of profits in Q2 given the losses in its computing segment, making that sector's marginal performance even more critical to profitability.

Conigliaro cut the $0.18 Q3 EPS estimate to $0.15, and cut the $10.7 billion revenue estimate to $10.5 billion. She also cut the $0.98 fiscal 2001 (Oct.) EPS estimate to $0.92, and cut the $1.35 fiscal 2002 estimate to $1.20.

Conigliaro maintains her market perform rating.

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