Hewlett-Packard Joins the Negative Forecast Party

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By Jacob Maslow

hp bulgaria officeHewlett-Packard’s first quarter results mirror many other large American corporations’ first quarter results. They had great earnings in the past. Many performed solidly. However, going forward in 2015, things are looking down. Many are forecasting serious downgrades in earnings. Not surprisingly, a lot of these companies’ stocks are getting hammered in after-hours trading.

Hewlett-Packard (NYSE:HPQ) is not an exception to this trend. It posted mixed results. While its revenues had risen 14.7%, the strong dollar took its toll on the company. It is saying that adjusted profit would be around $3.53 to $3.73 per share. This is below analysts’ consensus estimates of $3.95. All told, revenue dropped in the first quarter by 4.7%. Net income clocked in at $0.73 per share, which is one penny less than its previous year’s performance.

Putting these all together, the stock is registering mixed results and 2015 looks to be quite a rough year for this company. It is hardly alone. The series of negative guidance for 2015 and beyond should give investors pause as they try to craft strategies in today’s investing environment. As the stock market continues to set record after record, you need to look at these forecasts for 2015.

It is obvious that the divide between the reality on the ground and market hype and buzz is growing by leaps and bounds. This should scare you. Also, you should be on the lookout for early warning signs.

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