H-P (HPQ) Affirms Talks with Autonomy; Issues Q3 Results; Lowers FY11 Outlook; to Explore Options for PC Business
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Price: $29.65 +0.61%
EPS Growth %: -12.0%
Financial Fact:
Total net revenue: 11.89B
Today's EPS Names:
BTTX, VAXX, ELYS, More
EPS Growth %: -12.0%
Financial Fact:
Total net revenue: 11.89B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Hewlett-Packard (NYSE: HPQ) is trading in the red this afternoon amid a news onslaught by the computing and tech giant.
Earlier in Thursdays trading session, rumors that Hewlett-Packard was in talks to spin-off it's personal computer business (which it lovingly refers to as Personal Systems Group) for $10 billion and purchase Autonomy (OTCBB: AUTNY), which is U.K.'s second-largest software maker and offers programs used in database search. On the news, Hewlett-Packard made basically a 15 to 16 point swing, moving from down 8 percent on the session to a high of $34.
Hewlett-Packard recently affirmed the talks, though it did not give a price for the PSG. Discontinuation of webOS services is also in the works, "specifically the TouchPad and webOS phones."
Though results for its third-quarter were expected to be released after the market closed, Hewlett-Packard issued them early anyway. Earnings were $1.10 per share on revenue of $31.2 billion, beating views calling for earnings of $1.09 per share and revenue of $31.19 billion.
Looking ahead, Hewlett-Packard sees fourth-quarter earnings of $1.12 to $.16 and revenue of $32.1 to $32.5 billion, missing consensus views calling for earnings of $1.31 and revenue of $34.4 billion. Hewlett-Packard also cut its fiscal 2011 outlook further, from about $5.00 to a range of $4.82 to $4.86, and revenue is expected to be $127.2 to $127.6 billion. Currently, the Street was looking for earnings of $5.01 and revenue of $129.15 billion.
From the initial afternoon surge, shares have settled and are now about 5 percent lower on the session.
The move may prove positive in the long-run, as Hewlett-Packard exits the struggling PC business as consumers flock to mobile devices and tablet PCs, both of which HP hasn't gotten a solid foothold in. With CEO Leo Apotheker coming from 20 years at SAP (NYSE: SAP), moving the company into a more software/service form might be a more comfortable position for the hierarchy.
Earlier in Thursdays trading session, rumors that Hewlett-Packard was in talks to spin-off it's personal computer business (which it lovingly refers to as Personal Systems Group) for $10 billion and purchase Autonomy (OTCBB: AUTNY), which is U.K.'s second-largest software maker and offers programs used in database search. On the news, Hewlett-Packard made basically a 15 to 16 point swing, moving from down 8 percent on the session to a high of $34.
Hewlett-Packard recently affirmed the talks, though it did not give a price for the PSG. Discontinuation of webOS services is also in the works, "specifically the TouchPad and webOS phones."
Though results for its third-quarter were expected to be released after the market closed, Hewlett-Packard issued them early anyway. Earnings were $1.10 per share on revenue of $31.2 billion, beating views calling for earnings of $1.09 per share and revenue of $31.19 billion.
Looking ahead, Hewlett-Packard sees fourth-quarter earnings of $1.12 to $.16 and revenue of $32.1 to $32.5 billion, missing consensus views calling for earnings of $1.31 and revenue of $34.4 billion. Hewlett-Packard also cut its fiscal 2011 outlook further, from about $5.00 to a range of $4.82 to $4.86, and revenue is expected to be $127.2 to $127.6 billion. Currently, the Street was looking for earnings of $5.01 and revenue of $129.15 billion.
From the initial afternoon surge, shares have settled and are now about 5 percent lower on the session.
The move may prove positive in the long-run, as Hewlett-Packard exits the struggling PC business as consumers flock to mobile devices and tablet PCs, both of which HP hasn't gotten a solid foothold in. With CEO Leo Apotheker coming from 20 years at SAP (NYSE: SAP), moving the company into a more software/service form might be a more comfortable position for the hierarchy.
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