Hewlett-Packard (HPQ) is a global provider of products, technologies, software, solutions & services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.
A leaked memo from CEO Leo Apothekar warned of a tough quarter, igniting a selloff in the stock. The company decided to release its Q2 financial results a day early to address investor angst. Earnings were announced on Tuesday, May 17, 2011 and management added fuel to the fire when they lowered 2011 guidance, punishing the stock; sending its PE to historic lows.
Guidance generates PE’s of 8.4 and 7.2 based on GAAP diluted EPS and non-GAAP diluted EPS, respectively.
Is the selling overdone? We’ll look at the numbers, along with past results to detect any trends, followed by our valuation and commentary.
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