HP share price tumbles as earnings fall far short of analysts’ forecast

 
Adam Hignett
Shares in HP fell more than 10 per cent (Source: Getty)

Shares in Hewlett Packard (HP) tanked yesterday, wiping out gains from a multi-billion dollar deal with Deutsche Bank as full-year results showed earnings far below analysts’ expectations.

Shares fell more than 10 per cent despite the deal, announced on Tuesday, under which Deutsche Bank would outsource parts of its US banking IT structure to the computer hardware maker.

HP profits were particularly hit by the strong dollar due to its high exposure to external markets which account for 60 per cent of its revenues. Revenue for the first quarter ending 31 January plunged 4.7 per cent to $26.8bn (£17.3bn), falling short of analysts expecta­tions, while HP’s net income fell to $1.37bn from $1.43bn a year earlier.

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