By The Numbers

By Reuters  |  Print this article Print

HP cut its 2011 revenue projections, citing weak consumer PC demand and slower times in its IT services arm. The quarter earnings announcement marked the first for HP's new CEO Leo Apotheker, the former chief at SAP.

HP is a dominant player in most major IT segments, including PCs, services, printers, and servers.

It reported net income of $2.6 billion for the fiscal first quarter ended January 31, or $1.17 a share, up from $2.3 billion, or 93 cents a share, a year earlier.

Excluding items, HP earned $1.36 a share, better than the average analyst estimate of $1.29 a share, according to Thomson Reuters I/B/E/S.

Revenue rose 4 percent to $32.3 billion, but fell short of Wall Street's estimate of $32.96 billion.

Before Tuesday, HP shares had largely rebounded from lows touched after the surprise ouster of Hurd last August. The stock had been up about 14 percent this year.

But investors are still eager to learn more about Apotheker and his long-term vision for HP. Apotheker will share his strategy at an event for analysts and media on March 14.

Tuesday's report sent HP's stock into a rare tailspin. In after-hours trading, it dived more than 10 percent -- surpassing the one-day percentage drop after the company stunned investors by announcing Hurd's exit. The sell-off, if racked up during a regular session, would mark the stock's biggest one-day drop since August 2004.

Shares of Palo Alto, California-based HP closed almost 1 percent lower at $48.23 on the New York Stock Exchange and fell further to $42.45 in extended trading.

(Additional reporting by Noel Randewich; Writing by Edwin Chan; Editing by Richard Chang, Gary Hill)