Hewlett-Packard (HWP) warned today that second-quarter earnings, eroded by pressures in the PC market, a less-than-optimum product mix, and a slowdown in its Asian business, would come in below expectations.
The company's stock, also beset by news of a patent-infringement suit filed by Xerox Corp. (XRX), plunged nearly US$10 to $71.75 in midday trading, a fall of 12 percent.
Hewlett-Packard said results for its second quarter, which ended 30 April and which are to be released on Friday, would be about 65 cents per share versus 75 cents per share in the same period last year, when it reported net earnings of $784 million.
"While we did achieve good revenue and order growth this quarter, we are disappointed that our early calculations show earnings per share coming in well short of expectations," said Lewis Platt, Hewlett-Packard's chairman, in a statement.
The expected earnings include the impact of previously announced printer-manufacturing consolidations in North America, effects associated with the acquisition of Heartstream, Inc. and other charges.
