HP to Layoff up to 9,000: Is It Time to Sell the Stock?
HP's (NYSE: HPQ) stock recently fell to a new 52-week low after the company announced a major restructuring plan that will cut 7,000 to 9,000 jobs from its workforce of 55,000 over the next three years. HP expects the restructuring to generate $1 billion in annual savings by the end of fiscal 2022, but it will initially throttle its earnings growth with $1 billion in expenses.
As a result, HP expects to report a full-year GAAP EPS of $1.98-$2.10, compared to the consensus estimate of $2.18 and its EPS of $3.26 last year -- which was significantly boosted by a big tax benefit. On an adjusted basis, which excludes the restructuring costs and other items, HP anticipates earnings of $2.22-$2.32 per share, which marks 10%-15% growth and matches analysts' expectations.
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Source Fool.com
