Hewlett-Packard Co. (NYSE:HPQ), the second-biggest personal-computer maker after Lenovo, retreated to the lowest price in three months, after reporting a big decline in third-quarter earnings and providing a weak forecast amid fading demand for PCs.
The shares tumbled 13 percent to $22.18 at 10:29 a.m. in New York after hitting $21.81, the lowest intraday price since May 22. The stock had gained 78 percent this year before today.
For the fiscal fourth quarter, per-share profit taking out one-time items will be in the range of 98 cents to $1.02, the Palo Alto, California-based company said in a statement yesterday. Analysts on average predicted $1.01 a share, according to data compiled by Thomson Reuters.
For the full fiscal year ending Oct. 31, per-share earnings will be $3.53 to $3.57, down from with the company's earlier forecast of $3.50 to $3.60. Analysts were modeling $3.57 a share.
HP suffers from a decline in personal-computer sales as more technology spending shifts to smart-phones and tablet computers. The company is overhauling its product line and pushing into more profitable niches in business software, data analysis and storage and technology consulting.
For the fiscal third quarter through July 31, adjusted earnings were 86 cents a share, below the 87 cents a share analysts had projected. Sales fell 8 percent to $27.2 billion.
The company also announced a shake-up of its top ranks, appointing Chief Operating Officer Bill Veghte as head of its enterprise business, to take over from Dave Donatelli. Chief of Communications Henry Gomez was promoted to chief marketing officer, replacing Marty Homlish.