H-P Slumps As Strong Dollar Weighs On Outlook

Shares of Hewlett-Packard Co. slid late Tuesday after the company cautioned that a bullish U.S. dollar will eat into its bottom line. The tech giant reported its fiscal first-quarter earnings fell to $1.37 billion, or 73 cents a share, from $1.43 billion, or 74 cents a share, in the year-earlier period. On an adjusted basis, H-P earned 92 cents a share, edging out analysts' estimate of 91 cents a share in a FactSet survey. Revenue declined 5% to $26.8 billion, falling short of Wall Street's forecast of $27.38 billion. H-P also cautioned that the impact of the strong dollar is more significant than expected and projected second-quarter adjusted earnings per share of 84 cents to 88 cents, reflecting 9 cents a share for currency headwinds. For 2015, H-P forecast adjusted EPS of $3.53 to $3.73 which is about 30 cents lower than the previous outlook. Shares of H-P shed more than 5% in after hours.