HP shares tumble after grim earnings report

By Roland Jones, NBC News

Hewlett-Packard?s share price took a tumble Thursday after the personal computer maker reported shrinking sales and disappointing earnings amid a multi-year plan to turn around its business.

HP?s share price was lately down 7 percent at just under $19. The company?s shares have lost 39 percent of their value since hitting a recent high in mid-February.

In September HP appointed Meg Whitman as its new CEO, making the former eBay chief executive the leader of a turnaround plan at the struggling technology giant.

In May the company said it would be cutting 27,000 jobs -- about 8 percent of the company?s total global workforce -- as part of a plan to slim down its operations, providing around $3 billion in savings for HP.

HP said on Wednesday it saw a $8.9 billion loss for its third quarter ended July 31. The company also posted a one-time write-down of $10.8 billion related to the amortization and impairment of purchased intangible assets.

Revenue was down or flat in nearly all of HP?s business segments, including imaging and printing, storage and networking, PCs and services.

?HP is still in the early stages of a multi-year turnaround, and we're making decent progress despite the headwinds,? Whitman said in a statement.

?During the quarter we took important steps to focus on strategic priorities, manage costs, drive needed organizational change, and improve the balance sheet. We continue to deliver on what we say we will do,? she added.

Hewlett-Packard reported its largest loss ever with a near $9 billion loss in the third quarter. Brian White, senior analyst at Topeka Capital Markets, and Shaw Wu, senior technology analyst at Sterne Agee, discuss.

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Source: http://marketday.nbcnews.com/_news/2012/08/23/13436861-hp-sinks-as-the-red-ink-rises?lite

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