Hewlett-Packard Reports: Market Happenings For Tuesday, November 20, 2012

Premarket, futures are mixed. Gainers this morning include SNDK (+2.09%), MNST, PHM, PWR and VRSN while losers include HPQ (-10.08%), BBY, CLF, URBN and AAPL.

The Market

Hewlett Packard Co. reported a loss of $6.85 billion ($3.49 per diluted share) in the quarter. The company had net income of $239 million or 12 cents per share in the year-earlier quarter. Revenue felll 6.7% to $29.96 billion from the year-earlier quarter. HPQ reported adjusted net income of $1.16 per share, beating the mean estimate of $1.14 per share. Analysts were expecting revenue of $29.92 billion.

HP is taking an $8.8 billion charge in its latest quarter largely to align the accounting value of Autonomy with its real value. It said most of that charge was due to the fictional bookkeeping at Autonomy. Sounds like fraud to me.

The Census Bureau reported that housing starts rose to an annual rate of 894,000 in October, which was better than the rate of 840,000 forecast. Housing permits declined slightly to an annual rate of 866,000 last month, which was less than the expected 870,000.

European stocks are mixed and Asian markets closed down.

Anyway, the big news this morning was the Happy Thanksgiving news from Hewlett-Packard that it has written down $8.8 billion of the value of Autonomy, the British software company it bought last year, after discovering that Autonomy misrepresented its finances.

Earnings Reports

Earnings reports (estimates): Medtronic ($0.88), HPQ-Hewlett Packard (1.14), CRM-Salesforce.com (0.32), HNZ-Heinz (0.88), CPB-Campbell Soup (0.85), HRL-Hormel Foods (0.50), VAL-Valspar (0.85), BBY-Best Buy (0.12), SIG-Signet Jewelers (0.37), PDCo-Patterson Cos (0.48), EV-Eaton Vance (0.48), CHS-Chico’s Fas (.23).

Financial Calendar

0745 ET ICSC (Int’l Council of Shopping Centers) weekly retailer sales.

0830 ET Oct housing starts expected -3.7% m/m to 840,000, Sep +15.0% to 872,000. Oct building permits are expected at -2.9% to 864,000, Sep +11.1% to 890,000.

0855 ET Redbook weekly retailer sales.

0900 ET Richmond Fed President Jeffery Lacker speaks on monetary policy in NY at the Shadow Open Market Committee’s Fall Symposium.

1130 ET Weekly 4-week T-bill auction.

1215 ET Fed Chairman Bernanke speaks to the Economic Club of NY.

1630 ET API weekly U.S. oil statistics.

Both comments and pings are currently closed.

Comments are closed.