Hewlett-Packard Co (NYSE:HPQ) forecast full-year earnings well below analysts' expectations, citing the impact of a strong dollar.
Continue Reading Below
Shares of the company, which also reported first-quarter revenue below the average analyst estimate, fell 6.5 percent in after-market trading on Tuesday.
"... we believe the impact on FY15 will be significantly greater than we anticipated in November," Chief Executive Meg Whitman said in a statement.
Palo Alto-based HP earned about two-thirds of its revenue from outside the United States in the year ended October 2014. The dollar <.DXY> had risen 14.7 percent in the past six months through Tuesday.
HP said it expected adjusted profit of $3.53-$3.73 per share for the full year ending October, missing analysts' average estimate of $3.95.
Revenue dropped 4.7 percent to $26.84 billion in the first quarter ended Jan. 31. Revenue from HP's enterprise services unit declined 11 percent.
The company's net income fell to $1.37 billion, or 73 cents per share, from $1.43 billion, or 74 cents per share, a year earlier.
Excluding items, the company earned 92 cents per share.
Analysts on average had expected a profit of 91 cents per share and revenue of $27.34 billion, according to Thomson Reuters I/B/E/S.
Up to Tuesday's close of $38.49, the stock had risen 9.3 percent since the company announced the split in October.
(Reporting by Abhirup Roy in Bengaluru; Editing by Sriraj Kalluvila)