HP misses analysts’ estimates

HEWLETT-PACKARD, the world’s largest computer maker, forecast fiscal fourth-quarter and full-year earnings that missed analysts’ estimates because of lacklustre consumer spending.

Sales for the period ending in October will be $32.1 billion (€22.39bn) to $32.5bn (€22.67bn), Palo Alto, California-based Hewlett- Packard said in a statement last night. That missed the average $34bn estimate of analysts surveyed by Bloomberg. Earnings excluding some items will be $1.12 to $1.16 a share, compared with analysts’ $1.31 average estimate.

For the full fiscal year, revenue will be $127.2bn to $127.6bn, compared with an average estimate of $129bn. Earnings excluding some items will be $4.82 to $4.86, missing the average $5 estimate.

Hewlett-Packard confirmed it’s considering a spin-off for its PC business and that it has agreed to buy software maker Autonomy Corp for $42.11 a share, or $10.3 billion. The company also said it is discontinuing products running WebOS software, including smartphones and tablet computers, and will explore options for that business.

Chief executive Leo Apotheker, who took the helm in November, has said he wants to expand in software and so-called cloud services, which help customers perform computing tasks over the internet.

Hewlett-Packard has been aiming to lessen its dependence on PCs, where growth has stalled as consumers flock to smartphones and tablet-style computers like those made by Apple Inc.

Third-quarter net income rose to $1.93bn, or 93 cents a share, from $1.77bn, or 75 cents, a year earlier. Profit excluding some items was $1.10, beating the average $1.09 analyst estimate. Revenue rose 1.5% to $31.2bn, matching estimates.

Hewlett-Packard shares fell $1.88, or 6%, to $29.51 on the New York Stock Exchange.