Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (3333)	5/13/1998 10:24:00 PM
From: LK2	Read Replies (2) \| Respond to of 9256

After hours warning from HWP-- The stock has been very strong recently, and now it's giving back some of its gains. >>>>>>>>>>>>>>>>>>>>>>>>> HP to miss 2Q target Company says pricing pressures, Asia crisis caused the earnings shortfall May 13, 1998: 8:23 p.m. ET Hewlett-Packard NEW YORK (CNNfn) - Hewlett-Packard Co. late Wednesday warned its second-quarter earnings will fall well below analysts' expectations due to pricing pressures in the personal computer market and troubles in Asia. The company said it expects profits for the three months ended in April to fall to approximately 65 cents a share from 75 cents a year ago. Wall Street had expected HP to report a profit of 77 cents a share in the quarter, according to First Call. News of the shortfall, which was released after the New York markets had closed, sent HP shares tumbling in after hours trade. Shares of HP (HWP) closed in New York at 81-5/8, up 1-3/4. But in after hours trade they tumbled 7-5/8. "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 E. Platt, HP chairman, president and chief executive officer. HP said its earnings suffered because of its product mix and pricing pressures in the PC business. The company also said economic weakness in Asia affected a number of its businesses, particularly measurement systems. HP said those products typically have higher gross margins. Steve Pavlovich, HP's director of investor relations, said PC sales were the "biggest problem by far" due to pricing pressures and deteriorating results in April. "Unfortunately, the price cuts we had to initiate to keep up with our competitors' fire sales took a toll," he said. The company noted that its expected earnings to include charges associated with printer-manufacturing consolidations in North America and $25 million in research and development costs relating to its acquisition of Heartstream Inc. "We just had too many things go wrong in April," Pavlovich said. HP will formally announce its second-quarter earnings Friday before the stock market opens. It originally planned to make the announcement next Monday. Analysts said Asia and the PC price war were well known factors in the market, but HP's warning was worse than expected. "It's not that Asia and PC's aren't something we didn't already know about but this is clearly worse than we expected," said Philip Rueppel with BT Alex Brown. Copyright c 1998 Cable News Network, Inc. ALL RIGHTS RESERVED. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<