Scandal Scraps Weigh on H-P

H-P said it expects sales in the current quarter to range between $24.1 billion and $24.3 billion, with EPS between 55 cents and 57 cents, or 60 cents and 62 cents excluding amortization charges for purchased intangible assets.

The average analyst expectation calls for H-P go earn 60 cents a share on $23.8 billion in sales in its fiscal first quarter.

The company projected seasonal demand for PCs, despite some reports of a sharp falloff in PC motherboard shipments.

In contrast to some industry executives who have spoken of an uptick in PC demand when Microsoft(MSFT Quote) releases it new Vista operating system, Hurd was more cautious, saying it was still unclear what the impact would be.

"We'll see what happens as the holiday season occurs -- and frankly, what happens after the holiday," Hurd said.