The Traderszone Network

Published in TZ Latest News 24 February, 2015 by The TZ Newswire Staff

Strong dollar hurts HP’s earnings forecast, shares plummet

“Revenue was a little short on the top end, the guidance for the second quarter was a little below where the consensus was,” said Daniel Morgan, a portfolio manager at Synovus Trust Co. The combined effect of those separation costs and the hit from the strong dollar will almost halve HP’s free cash flow this fiscal year to about $3.5 billion to $4 billion, down from a forecast three months ago of $6.5 billion to $7 billion. Palo Alto-based HP follows Microsoft Corp (MSFT.O) and International Business Machines Corp (IBM.N) in seeing a significant negative impact from the strong dollar.

read more