The world's largest technology company by revenue expects adjusted earnings per share between $3.74 and $3.84 for the year ending in October 2009. Analysts, on average, are predicting a profit of $3.79 per share, according to Thomson Financial.

At a meeting with analysts in New York, HP also forecast revenue between $117.1 billion to $118.2 billion, up 5 percent to 6 percent from fiscal 2008. Wall Street expects $117.96 billion in sales.

The forecast came at a time when technology investors are concerned that the slowdown in the U.S. economy -- amid the subprime mortgage crisis and rising oil prices -- is starting to spill over to the industry. Research firm IDC and others have recently lowered their growth forecasts for the worldwide information-technology market, with much of the slowdown coming from the U.S.

But HP sought to quell these worries, pointing out that it has a diverse business, with 67 percent of the its sales coming from outside the U.S.

Last month, HP posted fourth-quarter earnings that easily beat Wall Street's expectations, fueled by strong laptop sales and demand for its lucrative printer ink. The company also issued a 2008 forecast above consensus. On Tuesday, the company reaffirmed its 2008 guidance.

Louis Miscioscia, an analyst with Cowen and Co., said in a client note that he thinks investors will focus on this "solid, but known" guidance for the current fiscal year.

Chief Executive Mark Hurd, who has instituted widespread cost-cutting measures to improve the company's business since taking the helm in 2005, said HP has an opportunity to further improve its expense structure. Of the $104.3 billion in revenue last year, HP spent $94.7 billion, leaving $9.6 billion in operating profit.

Asked if his philosophy of HP's cost structure would be different if the U.S. enters a recession, Hurd said it "wouldn't change one bit."

"Excess cost kills you. So for us, we are going to get it regardless of what the economic conditions are," he said. The company has cut about 15,000 jobs since 2005. At the same time, Hurd said, HP has added about 2,000 positions in the past year, either through acquisitions or new hires.

HP ousted rival Dell Inc. to become the world's No. 1 personal computer vendor late last year and has been increasing its market share since. Printer ink, however, continues to be its most profitable business.

Shares of the Palo Alto, Calif.-based company fell 2 cents to $51.95. The stock has gained almost 30 percent in the past 52 weeks.