Hewlett-Packard Catches Asian Flu

Hewlett-Packard Co. shares fell as much as 3.7 percent Wednesday amid concern that earnings at the world’s third-largest computer maker will suffer in coming quarters because of Asia’s economic crisis.

H-P shares fell $1.06-1/4 to $58.37-1/2 in trading of 6.92 million, compared with the three-month daily average of 3.79 million. Earlier, they touched an 11-month low of $57.25, plunging almost five points from the day’s high of $62.06-1/4.

The Asia-Pacific region accounts for about 15 percent of H-P’s sales. Many U.S. companies have warned this month that stagnation in what was once a rapidly growing market will hurt sales and earnings this quarter.

“Our sense is that Asia is getting worse for H-P,” Merrill Lynch & Co. analyst Steve Milunovich wrote in a research report Wednesday. Milunovich cut his rating on H-P shares to “neutral/accumulate” from “accumulate/buy.”

Milunovich also cut earnings estimates for H-P. He expects the company to earn 62 cents in the fiscal third quarter ending in July, down from a previous estimate of 65 cents.

H-P last month reported that second-quarter earnings dropped to $685 million, or 65 cents a diluted share, from $784 million, or 75 cents, a year ago.