HP (NYSE:HPQ) announces a major restructuring that will include the elimination of 7,000-9,000 jobs from its workforce of 55,000 over the next three years, which the company says ultimately will save $1B/year.
But in the short term, the restructuring will weigh on HP’s bottom line: The company forecasts FY 2020 GAAP earnings per share of $1.98-$2.10, well below the $2.18 analyst consensus estimate.
On an adjusted basis, which would strip out the restructuring costs and other items, HP guides FY 2020 EPS of $2.22-$2.32, compared with $2.24 analyst consensus.
