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.
How Should Investors
Trade HPQ’s Earnings? Find Out Here
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.
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