HP recently outlined a turnaround plan that will include the company cutting the number of PC models that it sells by 25% over the next two years. HP stated that during its financial analyst day in San Francisco, that it had a weak financial outlook as well for the next fiscal year in addition to the fact that it expects earnings per share of $3.40 to $3.60, which is well below the analyst estimate of $4.18.
In addition to that, HP’s stock price took a recent shot to the gut after the announcement. It was down nearly 11% in mid-afternoon trading. HP has been working to turn itself around after a series of speed bumps including the development of and scrapping of a line of smartphones and tablets as well as declaring that it may very well sell its PC businesses and then changing its mind.
Meg Whitman, the new CEO for the company, announced money-saving plans back in May that involved cutting nearly 27,000 jobs. In this most recent analysis, executives outlined further plans for each product group. HP will simplify its PC and printer businesses by cutting 25% of the PC platforms it
