Hewlett-Packard Co., the world’s largest maker of computers and printers, reiterated earlier forecasts for fourth-quarter profit and sales that indicate rebounding demand from businesses and consumers.
Profit, excluding some costs, will be $1.25 to $1.27 per share in the period that ends in October, Hewlett-Packard said Thursday. That matches a preliminary forecast issued Aug. 6, when it said Mark Hurd was departing as chief executive officer. Analysts surveyed by Bloomberg predict profit of $1.26.
Hurd’s exit, after a probe found falsified expense reports in his name, leaves interim CEO Cathie Lesjak with the tasks of pursuing growth and integrating acquisitions while HP seeks a permanent successor. Shares have slumped 12 percent since Hurd left on concern the search will distract management and that his replacement won’t match the executive’s ability to cut costs or spur the gains reflected in Thursday’s results.
“There’s definitely a discount on HP shares now,” said Shaw Wu, an analyst at Kaufman Bros. in San Francisco who has a “buy” rating on the shares and lowered his 12-month price target by $10 to $51 on Wednesday. “Filling Mark Hurd’s shoes will be tough.”
Third-quarter net income rose 6.1 percent to $1.77 billion from $1.67 billion. Sales rose 11 percent to $30.7 billion, Hewlett-Packard said, in keeping with its earlier announcement. HP also maintained its forecast for fourth-quarter revenue of $32.5 billion to $32.7 billion.
For the full year, earnings will be $4.49 to $4.51 per share and sales will be $125.3 billion to $125.5 billion, the company said.
Via: sfgate.com
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