HP Boosts Earnings Estimates After Firings Start

 @DavidZie
on August 08 2012 10:51 AM

Hewlett-Packard Co. (NYSE: HPQ), the No. 1 computer maker, raised its estimates for third-quarter earnings to $1 a share from 94 cents apparently because of higher demand as well as the initial impact of firing 27,000 employees to shave costs.

Analysts surveyed by ThomsonReuters had previously expected HP, of Palo Alto, Calif., to earn 97 cents a share for the period ended July 31.

The No. 1 maker of PCs and servers, though, said the quarter will also include a charge ranging between $1.5 billion and $1.7 billion for restructuring as well as an $8 billion goodwill impairment charge in its services unit, apparently related to earlier acquisitions of companies including Electronic Data Systems. HP previously took charges for the acquisition of Compaq Computer in 2001.

HP is scheduled to release third quarter results on Aug. 22.

HP shares rose 50 cents to $19.46 in early trading.

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