H-P (HPQ) "Worse Than Feard" - Deutsche Bank; Slashes Numbers
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Price: $30.11 -3.8%
Rating Summary:
12 Buy, 23 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 23 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank slashed estimates and its price target on Hewlett-Packard (NYSE: HPQ) from $15 to $10 following the latest warning from the tech giant. DB said things at the company are worse than feared and they reiterated their Sell rating.
HPQ lowered FY13 non-GAAP EPS guidance to $3.40-3.60 versus the consensus of $4.17 and Deutsche Bank's own estimates of $4.00. FY13 was framed as a 'fix and rebuild' year.
"In a surprisingly candid assessment, Meg Whitman outlined the immense challenges facing HP and outlined a turnaround that will take even longer than expected," the analyst comments. "We remain cautious on HP's weakening fundamentals, challenging macro conditions & deteriorating cash flow."
The firm notes all major businesses continue to face structural decline and margin pressure and they see few drivers for acceleration and top line recovery in the 2014-2015 time frame, citing: 1) a continued decline of printing, 2) erosion in high margin Tech Services/ BCS, 3) competitive and structural pressure in the core EDS business and 4) share loss and margin pressure in consumer PCs.
The firm gave an astonishing figure that approx. 70% of HP's profit is in structural decline.
FY13 revenue/EPS was cut to $116B/$3.40 versus prior $119.3B/$4.00.
For an analyst ratings summary and ratings history on Hewlett-Packard click here. For more ratings news on Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $14.91 yesterday.
HPQ lowered FY13 non-GAAP EPS guidance to $3.40-3.60 versus the consensus of $4.17 and Deutsche Bank's own estimates of $4.00. FY13 was framed as a 'fix and rebuild' year.
"In a surprisingly candid assessment, Meg Whitman outlined the immense challenges facing HP and outlined a turnaround that will take even longer than expected," the analyst comments. "We remain cautious on HP's weakening fundamentals, challenging macro conditions & deteriorating cash flow."
The firm notes all major businesses continue to face structural decline and margin pressure and they see few drivers for acceleration and top line recovery in the 2014-2015 time frame, citing: 1) a continued decline of printing, 2) erosion in high margin Tech Services/ BCS, 3) competitive and structural pressure in the core EDS business and 4) share loss and margin pressure in consumer PCs.
The firm gave an astonishing figure that approx. 70% of HP's profit is in structural decline.
FY13 revenue/EPS was cut to $116B/$3.40 versus prior $119.3B/$4.00.
For an analyst ratings summary and ratings history on Hewlett-Packard click here. For more ratings news on Hewlett-Packard click here.
Shares of Hewlett-Packard closed at $14.91 yesterday.
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