By Tess Stynes
Hewlett-Packard Co. said its earnings for the January quarter
fell 4% as the company's desktop computer sales slowed.
Shares fell 3.6% to $37.10 in recent after-hours trading as the
company also disclosed the impact from the stronger dollar. The
stock has gained 29% over the past 12 months through Tuesday's
close.
For current quarter ending in April, the company forecast
per-share earnings of 84 cents to 88 cents, which includes a
currency impact of 9 cents a share. Analysts polled by Thomson
Reuters estimated 96 cents a share.
Hewlett-Packard in October unveiled plans to separate its
personal-computer and printer businesses from its corporate
hardware and services operations, which has been billed as the
growth engine. The company is expected to provide further details
about the planned separation during its conference call.
The recent wave of breakups and spinoffs at technology companies
and in the wider corporate world has been fueled by the idea that
companies with a narrower focus perform better.
H-P also has been undergoing a multiyear restructuring in an
effort to stem sales declines. The company has laid off tens of
thousands of employees and cut other costs to support its bottom
line.
For the fiscal first quarter ended Jan. 31, H-P reported a
profit of $1.37 billion, or 73 cents a share, down from $1.43
billion, or 74 cents a share, a year earlier. Excluding certain
items, per-share earnings rose to 92 cents from 90 cents. The
company had guided for 89 cents to 93 cents a share
Revenue decreased 5% to $26.84 billion, below analysts'
estimates of $27.34 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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