H-P stock falls; analyst cites CEO comments
Shares of Hewlett-Packard fell about 6% early Thursday, the worst on the Dow Jones Industrial Average after the company posted results that analysts say were "better-than-feared," but also signaled troubles ahead in the personal computer market. Analysts cited Wednesday's earnings call with company executives in which Chief Executive Meg Whitman said the PC market "remains weak and channel inventory is high across the industry. ... The reality is, we're locked in serious competitive battles but we're determined to win." RBC Capital analyst Amit Daryanani identified Lenovo as the main rival H-P was referring to, saying, "I believe the implication is they may sacrifice some margin degradation for PC share." With expected revenue and margin declines in PCs and printers, he added, "There is less clarity in understanding beyond cost savings what can sustain earnings per share higher on a year-over-basis."