Skip to main content

HP cuts full year outlook on Japan woes

Hewlett-Packard Co slashed its full-year outlook, casting doubts about Chief Executive Leo Apotheker's turnaround plan and sending its shares down 5.4 percent.

The world's largest technology company blamed the impact of the March earthquake in Japan and weak PC sales.

The company released its results a day before it originally planned after an internal memo from Chief Executive Leo Apotheker warned his executives of "another tough quarter" ahead.

Apotheker, who took the helm in September, wants to boost earnings and dividends by pushing into sectors such as cloud computing, where services are hosted from data centers. Investors are looking for signs of progress on that strategy.

"HP has been known historically for consistency," said Gleacher & Co analyst Brian Marshall. "Now they are known for inconsistency."

HP cut its outlook for full-year profit, excluding items, to "at least $5.00 per share" from previous outlook of "$5.20 to $5.28" and cut full year revenue outlook from $130 billion to $131.5 billion to new forecast of $129 to $130 billion.

It expects lower operating profit for its services business, one of its biggest units.

Revenue in the fiscal second quarter ended April 30 rose to $31.63 billion, up 3 percent from the previous year and slightly above the average analyst estimate of $31.52 billion, according to Thomson Reuters I/B/E/S.

The revenue growth was driven by its commercial and enterprise businesses on continued technology spending.

The company reported net income of $2.3 billion, or $1.05 a share, up from $2.2 billion, or 91 cents a share, a year earlier.

Excluding items, HP earned $1.24 a share, better than the average analyst estimate of $1.21 a share.

Its shares were down 5.4 percent at $37.64 in premarket trading.


By Reuters
Labels:

Comments

Post a Comment

Popular posts from this blog

GL SLAMS ‘COLONIAL’ RIGHTS GROUPS

Sri Lanka’s foreign minister Gamini Lakshman Peiris rejected “colonial” criticism Tuesday of a government-appointed civil war probe, after foreign rights groups snubbed an invitation to attend. New York-based Human Rights Watch, London-based Amnesty International and Brussels-based International Crisis Group last week accused the panel of a cover-up and refused an offer from Colombo to appear before it. Peiris said in a speech to the International Institute for Strategic Studies, a leading think-tank based in London, that the rights groups had displayed a “most unattractive attitude.” “It smacks of an attitude that is almost colonial, patronising and condescending, the assumption being that other people must step in because Sri Lankans are unable to chart a course for their own future,” he said. Peiris, who is in London for talks with the British government, said the LLRC was based on similar reconciliation commissions in countries such as South Africa. He urged rights groups and
Post a Comment
Read more

IRRESPONSIBLE TALK BY MEMBERS COST UNP ITS VOTERS, SAYS SAJITH

The voters have distanced themselves from the United National Party (UNP) because several members had demeaned the military victories during the recently concluded war against the Liberation Tigers of Tamil Eelam, said Hambantota District parliamentarian Sajith Premadasa. Former President Ranasinghe Premadasa’s son, Sajith was addressing a meeting at Gurutalawa at the Yatinuwara electorate in Kandy last evening to raise awareness on his Jathika Jeewaya Programme. Mr. Premadasa launched this programme within three electorates in the Gampaha District last week as well. Adding further, Sajith Pramadasa said the UNP suffered erosion in its support as some had uttered irresponsible comments when the Sri Lankan armed forces were gaining victory after victory in the fight against the LTTE. When the Army captured Thoppigala, some in the UNP had said that Thoppigala was only a jungle, while some had accused the then government and the military of claiming to be advancing towards Kilinochc
Post a Comment
Read more

TNA vows civil disobedience

Sri Lanka’s main Tamil party on Saturday vowed to launch a Gandhi-style civil disobedience campaign to press a long-standing demand for regional autonomy for their ethnic minority. The Tamil National Alliance (TNA) in its manifesto for April parliamentary elections renewed its demand for extensive regional autonomy – after Tamil Tiger rebels who fought in their name were crushed last year. “If the Sri Lankan state continues its present style of governance without due regard to the rights of the Tamil-speaking peoples, the TNA will launch a peaceful, non-violent campaign of civil disobedience on the Gandhian model,” the party said. The TNA was a puppet of the Tamil Tiger rebels who were crushed by security forces in May last year after 37 years of fighting. The United Nations has said up to 100,000 people were killed in the conflict. On Saturday the alliance said it would lobby neighbouring India and the international community to ensure the island’s Tamil community -- 12.5 percent
Post a Comment
Read more