The fastest-growing major computer firm, Hewlett-Packard Co., on Friday reported a 42 percent jump in profit for its fourth quarter, but its stock fell due to investor resentment over the price for such growth - a lower profit margin.
The company's profit of $678 million exceeded consensus forecasts on Wall Street. Much of its growth came from personal computers, which have a lower profit margin than other computers. By contrast, profit was up 66 percent in the May-July quarter over a strong performance in that period a year ago.Lewis E. Platt, the company's chairman and chief executive officer, expressed satisfaction with the latest results but also said margin pressures will continue.
The company's stock closed down $4.75 to $88.50 on the New York Stock Exchange Friday, a 5 percent drop on volume that was more than twice its daily average. Its price has fluctuated from $88 to $96 over the past month.