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Hewlett-Packard Predicts Higher Q3 Earnings, Charges

The tech giant will write down $8 billion from its services unit


Hewlett-Packard (NYSE:HPQ) boosted its profit outlook for the third quarter on Wednesday, while increasing the extent of charges and write-downs it would take.

The computer equipment maker projects adjusted earnings per share of $1 for the current quarter, up from an earlier forecast of between 94 cents and 97 cents a share.

Today’s Technology: Post-PC or PC-Plus?
Today’s Technology: Post-PC or PC-Plus?

Wall Street had estimated adjusted earnings for the current quarter at 97 cents a share, Bloomberg noted.

Shares of Hewlett-Packard rose more than 2% in Wednesday morning trading.

Company officials said they would write down about $8 billion in goodwill from its services business during the quarter.

The company also increased the amount of pretax charges it will take relating to restructuring costs, mostly covering payroll reductions. HP anticipates third-quarter charges of between $1.5 billion and $1.7 billion. That’s up from an earlier estimate of $1 billion.

Additionally, HP announced that it had tapped Mike Nefkens as interim head of its enterprise service unit, while Jean-Jacquest Charhon would become chief operating officer of the unit.

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