Hewlett says its 3rd-period net was hurt by errors in predicting product demand
Article Abstract:
Hewlett-Packard Co reports that errors in estimating demand for its product lines depressed 3rd qtr earnings much lower than analysts' expectations for the 2nd qtr in a row. The manufacturer of computers and scientific instruments will report that per-share net was 75 cents to 80 cents, in comparison to analysts predictions of as much as 95 cents. Estimated per-share net income for the 3rd qtr, ended July 31, was 11 percent to 16 percent less than what was anticipated. Both domestic and international orders for its products are revealing good yearly growth, but revenues will fall below expectations because of problems in adjusting shipments to match the changing mix of its business, according to the company.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Hewlett net fell 8% in quarter; stock slips $1.875
Article Abstract:
Hewlett-Packard reports an 8 percent decline in net income for 2nd qtr 1990. HP's stock fell $1.875 a share with that news, even though the lower earnings came as no surprise to analysts. The negative reaction is attributable to HP's gloomy forecast, as well as the revelation that the firm is loosing workstation market share to rivals Sun Microsystems and IBM. HP claims the poor performance is attributable to a shift in sales towards products with lower, margins such as microcomputers and printers. As a result, the firm will enact a cost cutting scheme that will include an early retirement plan. HP's revenue for the quarter is up 16 percent, to $3.3 billion.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Hewlett-Packard posts 3% decline in quarterly net
Article Abstract:
HP announces 3rd qtr 1989 earnings of $187 million, down 3 percent from the previous year, and revenues of $3 billion, up from $2.4 billion in 3rd qtr 1988. The decline in earnings is blamed on HP's 'uncertain' outlook on its minicomputer products and the weak demand for these machines. Sales continue strong for workstations, microcomputers and printers, but forecasting is difficult because HP relies on third parties to sell the products. Industry analysts see this trend as eventually hindering HP's management of its business and making HP stock less attractive.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
User Contributions:
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