Shares fall for HP after weak result

HELWETT-PACKARD failed to meet investors’ sales expectations, resulting in a fall in shares.

The US technology giant said revenue for its first fiscal quarter of this year climbed 3.6 per cent to $32.3bn (£20bn), below forecasts of $33bn.

Shares in the firm fell 12 per cent in after hours trading to $42.4 following the news.

Sales in two of its core businesses – personal computers and technology services – contributed to the drop.

The limp performance overshadowed higher than expected fiscal first-quarter profit, driven in part by cost discipline and lower component costs.

The firm recorded a 16 per cent jump in profit to $2.61bn, or $1.17 per share. Revenue increased 3.6 per cent to $32.3bn.

The results could worry investors in the world’s biggest PC maker, which had become a likely candidate for a turnaround story.

Shares in the firm fell significantly following the departure of chief executive Mark Hurd last summer.

However stocks had begun to rise again this year prior to yesterday’s announcement.

New chief executive Leo Apotheker will attempt to address the California-based firm’s woes as he unveils his strategy for the firm next month.