HP Cuts Full Year Outlook, Plays the Blame Game

Paul Lilly

Hewlett-Packard, the world's largest PC maker, cut its full year forecast on Tuesday saying it now expects $5 per share for the year, down from previous predictions of $5.20 to $5.28 per share. The new number is also well below Wall Street expectations, which pegged HP to perform at $5.24 per share. There was plenty of blame to go around for why HP expects its numbers to be lower.

HP cited the recent earthquake in Japan as a contributing factor, but didn't stop there. The OEM also blamed a dip in PC sales and weakening performance in its tech services businesses, the Associated Press reports .

Investors have plenty to worry about. HP also lowered its 2011 revenue guidance to $129 billion to $130 billion, down from $130 billion to $131.5 billion HP was forecasting back in February. Analysts expect HP to post $130.47 billion in revenue for the year.

HP CEO Leo Apotheker warned of "another tough quarter" in a leaked memo, stating that management needed to "watch every penny and minimize all hiring."

Image Credit: Flickr (włodi)

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