Combined Hewlett-Packard & Compaq Miss Quarterly Revenue Projections

HP announced on Wednesday that it has missed its projected quarterly revenue. HP posted adjusted earnings of $.29 per share for its first fiscal Q1 of 2003, which did exceed analysts projections of $.28 per share; but despite this, said its revenues were $17.9 billion, nearly $600 million below its projections. HP cited poorly performing U.S. sales as the main cause. HP and Compaq merged last year after a long and ugly battle between shareholders and management that cost HP $18.7 billion to acquire Compaq. Some analysts attributed the revenue shortfall to the fact that the mega merger of the two companies is not working out. HP shares fell 15.4% percent to $15.37 on the NYSE, which is the lowest its stock has been since November 2002. HP did announce that its PC group was profitable, but did not release any numbers as to its performance.

Share: