Boston, MA 05/23/2014 (wallstreetpr) – Technology company, Hewlett- Packard Company (NYSE:HPQ) announced that more elimination of jobs is in the cards. The company could not provide either in line or upbeat outlook for the third quarter or the fiscal year. Therefore, it appears to have resorted to job cutting to shore up its bottom line rather than generating more revenue and profit from the business.
Job Cuts
The company has mulled a multi-year restructuring plan in May 2012 allowing its management to simplify business processes, lower costs, accelerate innovation and deliver better results. As a follow up to this plan, Hewett Packard Company had earlier estimated 34K positions for elimination.
While releasing its second quarter results, the company disclosed that there is no letup in its objective to reengineer the jobs so as to be more competitive. Only then, it will be in a position to achieve its objectives, the company seemed to have believed this. As a result, the technology solutions provider boosted the probable elimination of posts by 11K – 16K.
Outlook
Hewlett- Packard Company (NYSE:HPQ) sees GAAP and adjusted earnings to be 59 – 63 cents a share and 86 – 90 cents a share respectively for the third quarter. The midpoint of the adjusted earnings per share falls shy of the Street analysts’ expectations of 89 cents a share.
Similarly, for the fiscal year 2014, the company estimates GAAP and adjusted earnings to be $2.68 – $2.80 a share and $3.63 – $3.75 a share respectively. Again, the mid-point of the guidance is below the analysts’ predictions $3.71 a share.
2Q Results
The Hewlett- Packard Company (NYSE:HPQ) reported net earnings of $1.273 billion or 66 cents a share, up from $1.077 billion or 55 cents a share in the year earlier quarter. On an adjusted basis, net earnings were $1.691 billion or 88 cents a share compared to $1.698 billion or 87 cents a share in the year-ago quarter. The company’s earnings were in line with the analysts’ expectations of 88 cents a share.
Net revenues slackened 1% to $27.3 billion from $27.3 billion in the previous year quarter. This fell short of analysts’ predictions of $27.41 billion.
