Wall Street Journal: Earlier this month, HP CEO Leo Apotheker sent top executives an e-mail warning that the company was in for "another tough quarter." He wrote, "We must watch every penny and minimize all hiring," adding that HP has "absolutely no room for profitless revenue or any discretionary expenditures." When the e-mail leaked to the press and sent stocks tumbling, HP hastily moved up an earnings call that had been scheduled for Wednesday.
During the call, the company forecast current quarter earnings of $1.08 a share on revenue of $31.1 billion to $31.3 billion, lower than analysts had expected and lower than HP had previously predicted. They blamed the changes on weak consumer demand due to the rise of tablet PCs and current changes underway in HP's services business.