HP CEO steps down, and taps, a veteran insider; flags quarterly profit below Street view

FILE PHOTO: according to Dion Weisler, President, and chief executive officer of Hewlett-Packard (HP), and can be seen on the floor of the New York Stock Exchange (NYSE) in New York, New York, USA, October 3, 2018. REUTERS/Brendan McDermid

(Reuters) – the HP’s, Inc., HPQ.N) said on Thursday its Chief Executive Officer, according to Dion Weisler is stepping down after nearly four years in the role, and its forecast fourth-quarter earnings below Wall Street’s estimates, sending its shares down 6 percent in late trading.

The company said Weisler, 52, is leaving the role to attend to a family health matter. Enrique Lores, a 30-year veteran of the company, and is currently president of HP’s imaging, printing and solutions business, the CEO position on Jan. 1.

“On behalf of the board of directors, we are committed to Dion’s decision to support the needs of the family,” said Chip Bergh, the chairman of HP’s board of directors.

Lores, who started out as an engineering apprentice with the company and played a key role in the formation of Hewlett-Packard into two publicly traded companies. The 53-year-old was also involved in the company’s $1.05 billion acquisition of Samsung’s printer business in march of 2017.

Palo Alto, California-based HP Inc., in the hardware business, which was formerly a part of Hewlett-Packard development Company, expects fourth-quarter earnings in the range of 55 cents to 59 cents a share, with the midpoint below the average analyst estimate of 58 cents, according to IBES data, Refintiv.

For the third quarter ended July 31, HP Inc. has reported a sales turnover of € 14.60 billion, slightly below analyst estimates, hurt by weak sales in the graphic arts industry.

The company reported adjusted earnings of 58 cents per share, which is higher than the 55 cents analysts estimated.

The shares of the company fell by 6.2% to $17.75 in late trading.

Report by Ayanti Berra in Bengaluru; Editing by Anil D ” Silva and Bernard Orr

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