HP Tanks After Warning Profits Will Come Up Way Short Of Expectations

Meg WhitmanHP CEO Meg Whitman

Photo: AP

HP’s stock is getting smoked today after CEO Meg Whitman lowered the company’s expectations at its analyst meeting.HP’s profit forecast for fiscal 2013 is $3.40-$3.60 per share, well below analyst estimates of $4.16. Shares fell 12%, hitting a nine-year low.

Whitman warned analysts that HP will experience “broad-based profit decline” but said the company will be “more contained” than in fiscal year 2012.

Whitman discussed a multi-year turnaround and promised that it will complete its savings targets and restructuring by the end of fiscal 2014. She expects the company’s revenues to be “growing in line with gross domestic product” by 2016.

Last summer, HP said that it would shed 27,000 jobs, saving $3 billion. It then increased its layoff to 29,000 jobs, and savings to $3.3 billion. In August, it announced an $8 billion write down, due to a goodwill impairment on its $13.9 billion EDS acquisition.

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