Earnings Preview: Hewlett-Packard posts 4Q results

Hewlett-Packard set to report 4Q results as turnaround plan continues

Associated Press

NEW YORK (AP) -- Investors will get a look at how Hewlett-Packard Co. is progressing with its turnaround when the computer maker announces its fiscal fourth-quarter results on Tuesday.

WHAT TO WATCH FOR: HP has been trying to ease the pain of a slumping PC market by cutting costs and focusing on more profitable areas.

But the company has lately been optimistic about the future. Last month, HP said it expects its fiscal 2014, which started in November, to be a year of "recovery and expansion" and issued a strong profit outlook for the year.

In an October presentation to analysts, CEO Meg Whitman said the company will focus on new products and services next year while controlling costs under stable leadership.

WHY IT MATTERS: Palo Alto, Calif.-based HP is the world's second-largest maker of PCs and is considered a bellwether in the technology industry.

Like many PC makers, HP was slow to respond to the shift to mobile computing. The company stumbled in recent years trying to catch up with the likes of Apple Inc. and Samsung Electronics. Whitman is trying to turn the company around, but she has warned that it will be a long-term endeavor.

WHAT'S EXPECTED: Analysts polled by FactSet expect HP to post an adjusted profit of $1 per share on $27.86 billion in revenue for the August-October quarter.

LAST YEAR'S QUARTER: HP posted a loss of $6.85 billion, or $3.49 per share. Excluding one-time items, the company posted a profit of $1.16 per share. Revenue fell 7 percent to $30 billion.

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