Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Thursday, October 19, 2006

Tech Beat: Earnings Season Lessons To Date (WIT)(DELL)(IBM)(HPQ)(AAPL)

By William Trent, CFA of Stock Market Beat

Indian software firms remain on a tear. Wipro (WIT) reported 48% profit growth on 41% sales growth. The company hired 5,328 new employees in the last three months alone, bringing its total to more than 61,000. We would have been impressed if it’s similarly-sized peer Infosys (INFY) hadn’t hired nearly twice as many.

DELL (DELL) continues to lose ground to Hewlett Packard (HPQ). Gartner Inc. said Hewlett-Packard moved into the No. 1 position for the first time since the fourth quarter of 2003 with a lead of 110,000 units over Dell, while IDC put the lead at 28,000 units, which it considered a statistical tie at 17.2 percent of the world market. Still, Apple (AAPL) is doing even better.

Price wars don’t help anybody. At least not Intel (INTC) or AMD (AMD).

Keane (KEA) isn’t getting IT done any better than IBM (IBM) or CDW (CDWC). From the conference call: “On a year-to-date basis, Keane’s revenues are up 4%, excluding the IBM staffing business, which we divested last year.” That is more or less in line with the industry, which shouldn’t get many investors excited. The author may hold a position in the securities discussed.

A current list of the author's holdings is available here.

Powered by Blogger