Hewlett-Packard resumes buybacks after split announcement, affirms 2014 and 2015 outlook
PC maker Hewlett-Packard said Wednesday it is resuming buybacks and reaffirmed its guidance for 2014 and 2015.
Earlier this month the Palo Alto, California-based company said it was splitting its business into two publicly traded units, its PC and printing businesses and its services business in an effort to become more profitable.
Hewlett-Packard Co. said it had suspended buybacks due to the "possession of material non-public information," but was resuming activity since it no longer has that information. It didn't give any more details.
It wasn't clear when Hewlett-Packard suspended buyback activity. It repurchased 17.5 million shares for $582 million in the third quarter ending July 31.
The company reaffirmed 2014 guidance of earnings of $3.70 to $3.74 per share, and 2015 guidance of $3.83 to $4.03 per share, both excluding one-time items. Analysts expect $3.73 per share in 2014 and $3.95 in 2015.
Shares rose 51 cents, or 1.6 percent, to $32.752 in premarket trading.