On Wednesday, shares of Hewlett-Packard fell to a new 10-year low after Meg Whitman the CEO of the tech company warned the turnaround efforts were going to take much longer than originally thought.
The tech company has been hit with problem after problem and saw its stock lose nearly 13% of its value to close on Wednesday at $14.91. The closing price Wednesday was the lowest price of HP stock since November of 2002. An earnings forecast was also announced on Wednesday and was substantially worse than analysts expected.
Thus far, in 2012, the stock price for HP has lost 40% of its value. The plummet in price on Wednesday was the largest one-day percentage drop since August of 2012. CEO Whitman announced that the upcoming year would be one for rebuilding and fixing, which will have declines in profit, although the declines will be more contained in the upcoming year than they were in the recent 2012 fiscal year.
Whitman said acceleration in the company would not take place unit sometime during the fiscal year of 2015. In their earnings report, the company said adjusted earnings should come in 2013 between $3.40 and $3.60 a share. Analysts were expecting that number to be closer to $4.18 for each share.
A large amount of sell off is taking place due to the outlook being very weak, but analysts said there was still a downside potential. Whitman expressed that more challenges for the company lain ahead and she expects the IT-services segment of the company to have a reduction in revenue of close to 11% for the upcoming year.
