Skip to main content

HP warns of tough year, cuts financial forecast

HP CEO Leo Apotheker
Image used with permission by copyright holder

Technology giant Hewlett-Packard jumped the gun a little bit and pushed its financial results for the second quarter of its fiscal year out the door a little early. Overall, the numbers find HP’s revenue was up three percent compared to the same quarter a year ago, with new revenue a whopping $31.63 billion and earnings of $2.3 billion. However, the company also cut its earning forecast for the year, sending its stock into a downturn, as the company works to overcome a serious of obstacles—including supply chain issues stemming from the massive 9.0 magnitude earthquake that struck Japan in March.

“HP executed well and delivered a solid quarter,” said HP CEO and president Leo Apotheker, in a statement. “Our enterprise strategy, with services at its core, is focused on higher value-added solutions. Today we are accelerating our efforts to align our services business model to our long-term strategy to deliver unprecedented value to our customers and a better return for our shareholders.”

Overall, HP’s earnings translated to $1.05 per share—excluding special items, that would have been $1.24 per share, and both figures beat what Wall Street analysts were expecting. However, looking forward HP forecasts its next quarter earnings will be $1.08 per share, and the company revised its forecast for the full year to earnings of $5 per share, moving expectations down a notch from the $5.20 to $5.28 they were forecasting earlier this year. In addition to ramifications from the Japan quake, HP cited overall softness in the PC market—which is being partly eroded by tablets—as well as reduced operating profit from its services division, which provides tech services to government, education, enterprise, and other sectors.

A leaked memo from CEO Apotheker warned that the company would be facing a tough quarter and that managers within the company needed to “watch every penny and minimize all hiring.”

Editors' Recommendations

Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
HP’s 72-hour flash sale drops price cuts on laptops, printers, and headsets
HP Envy 13

Ah, the flash sale. Those frequent, frenzied savings windows that flood your inbox with exclamation points and make you question your levels of self-control. Not all flash sales are created equal, however. Some flash sales start and end before you’re even aware of their existence. Others last weeks on end, begging the question of how long a “flash” really is, anyway. The ongoing 72-hour HP flash sale
, on the other hand, is just right. Though there are always decent laptop deals if you know where to look.

Now through 4 a.m. on July 28, HP is offering up to 61% off select products, including free shipping and easy returns, in addition to an extra 5% off select PCs and bundles with the promo code BTSSTACK5, and an extra 10% off with the code BTSSTACK10. The HP Spectre x360 13 laptop is just one among a plethora of products receiving deep discounts this week. Read on below to see which other deals are worth a look.
HP Envy 13t Touch Laptop
-- $400 off

Read more
HP’s Spectre x360 13 convertible laptop gets a $150 price cut in flash sale
HP Spectre x360 13 (late 2018)

HP may not yet have its own marquee summer savings event like Amazon Prime Day, but the company has been dropping discounts lately on products like gaming laptops, desktops, and more. The company largely known for PCs and printers may have arrived late to the laptop game, but they’ve now become a reliably worthy competitor to Apple, Dell, and others. 

The Spectre series of 2-in-1 laptops are among our favorite product offerings from HP, and now, as part of their current weekly deal, the HP Spectre x360 13 laptop can be yours for just $1,330, down from its original $1,480. Thirteen-inch laptops are an ideal choice for students, professionals, or anyone in between, so if you’re in the market for one and you like saving money, give this deal a glance.

Read more
The HP Spectre x360 2-in-1 laptop gets a $250 price cut before Prime Day
HP Spectre x360

The final 4th of July sales are coming to an end, so the clock is ticking if you’re looking to take advantage of those sales before Prime Day kicks off in 5 days. Together, July Fourth and Prime Day make this month one of the best times of the year for deal shoppers outside of Black Friday and Christmas, and there are a bunch of sales running right now from HP, Dell, Walmart, and others, and the HP Spectre x360 13 -- one of the best 2-in-1 ultrabooks on the market -- is currently on sale
for a nice $250 discount.

The HP Spectre x360 13 might be our favorite 2-in-1 laptop, matched only by the Dell XPS 13 (which is also on sale right now for July 4) for build quality, features, and portable convenience. Traditional laptops still command the larger market share, but it’s not hard to see why featherweight ultrabooks and 2-in-1s are quickly carving out a larger slice of it: Devices like the HP Spectre x360 represent the cutting edge of laptop technology with their super-slim builds, great touchscreen displays, and unmatched versatility.

Read more