Hewlett-Packard Company(NYSE:HPQ) shares are hammering down in the pre-open session and slumped 8% despite the company reported better than estimated fourth quarter earnings.
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The company earned $1.16 on an adjusted basis, ahead of analysts’ target by 2 cents. However, revenue came in at $29.96 billion, missing analysts’ estimates by $500 million.
The latest quarter included a non-cash charge of $8.8 billion related to the company's Autonomy business in its Software unit. Looking ahead, Hewlett-Packard expects adjusted first-quarter profit of 68 cents to 71 cents a share, compared to the analyst target of 85 cents a share.
So far HP CEO Whitman has focused on job cutting and reorganization of company’s structure to create confidence in investors and analysts for a turnaround which will take several years.
Recent research reports suggest HP is losing its PC market to rival Lenovo Group Ltd which is now world’s top seller of PCs. Also HP’s rival Dell’s dismal earnings and revenue reporting in the last quarter shows growing consumer and business appetite for less expensive mobile device for computing needs.