There were quick second thoughts about those only slightly less than glittering fiscal third quarter figures from Hewlett-Packard Co, and after the shares had been savaged in the market on Tuesday, analysts started saying the company should regain its earnings momentum in the coming months; The price is right, David Wu at S G Warburg told Reuter – The company is still outpacing its competitors, and Hambrecht & Quist analyst Bob Herwick also said he was recommending the stock at current levels, saying profits would continue to grow during the fourth quarter, a traditionally strong period for the company; nevertheless he was surprised by the fall in Hewlett’s gross margin to 40.2% in the third quarter from 41.2% in the previous three months; Montgomery Securities analyst Craig Sultan said the market had high expectations for the company and lately investors in technology stocks are overreacting on any sign of weakness in a company’s outlook – But these guys are doing a phenomenal job executing (their business plan) given the market conditions, said Sultan.
