News
HP Revamps Earnings Outlook
- By Scott Bekker
- January 12, 2001
Hewlett-Packard Co., citing
declining economic conditions and a slowing in corporate and consumer IT
spending in recent weeks, announced yesterday that it no longer expects to meet
previous first quarter guidance. The company now expects to achieve earnings
per share in the range of 35 to 40 cents for its first fiscal quarter ending
January 31.
Carly Fiorina, chairman, president, and CEO of HP, said, “It’s
clear there’s been a significant change in market conditions in recent weeks.
Consumer spending in the U.S. has been below even our own conservative
estimates and our enterprise customers – responding to the growing economic
uncertainty – have become increasingly cautious about IT spending.”
Fiorina cited HP’s gross margin guidance at the “low end of
the 27.5 to 28.5 percent range”, but said that HP is “not counting on
improvement during the first half of our fiscal year ending April 30.” – Isaac Slepner
About the Author
Scott Bekker is editor in chief of Redmond Channel Partner magazine.