HP ups 3rd quarter EPS outlook, takes $8 billion charge

Hewlett Packard Co raised its third-quarter earnings outlook and said it was taking an USD 8-billion goodwill impairment charge in its services unit.

It also said it expects to record a pre-tax charge of about USD 1.5 billion to USD 1.7 billion from restructuring.

The world's No. 1 personal computer maker said on Wednesday it now expects earnings per share, excluding items, of about USD 1.00 compared with analysts' estimates of 97 cents, according to Thomson Reuters I/B/E/S. Previously, it had forecast EPS in a range of 94 cents to 97 cents.

HP said it is taking higher restructuring charges than it had predicted in the third quarter because more employees than expected are taking early retirement and because it is implementing its workforce reduction program faster than expected.

HP had said in May that it was planning to cut around 27,000 jobs or 8% of its workforce over several years in an effort to save up to USD 3.5 billion annually. HP shares rose 2% in early morning trading.