Watch out below! HP’s stock is tumbling to new lows as the company lays out its 5-year recovery program. Wall Street clearly doesn’t like what it’s hearing either.
HP’s stock opened at $17.35 and maintained this price throughout the day until it suddenly, nearly violently, crashed to where it sits now at 10% down for the day at $15.50, a 9-year low.
The plan outlined by HP’s top leadership today calls for a long-term recovery program. Sustained growth is not expected until 2015. The company also provided a financial outlook for fiscal 2013 indicated that non-GAAP earnings per share will be in the range of $3.40 to $3.60 and GAAP diluted EPS to be in the range of $2.10 to $2.30.
But radical change takes time and HP CEO Meg Whitman doesn’t expect HP’s revenues to grow inline with the US GDP until 2016.