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Karen Finerman: Expect H-P to Guide Down

”With all this going on, the quarter can’t be going well. It can't be going well for this to be happening!" says a visibly agitated Karen Finerman.

"I'm shocked they re-affirmed. I’d highly, highly, expect to see the company guide down sometime soon.”

That’s Finerman’s knee-jerk reaction to news that H-P named Meg Whitman as its new president and CEO, replacing unpopular leader Leo Apotheker at the helm of the largest U.S. technology company.

And the suddenness of developments is giving her indigestion.

”Also, the company has had an issue with leaks," she says. "But we didn't know until yesterday that Meg Whitman was going to be their new CEO. Does it mean they did not do a broad search?”

Finerman thinks had the H-P board come to the conclusion to replace Leo Apotheker much earlier than yesterday the news would have been everywhere.

"And that makes me nervous that the process was not thought out well!" she adds.

The move, effective immediately, confirmed earlier reports on the impending change.

"We are at a critical moment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead," said Ray Lane, who has moved from non-executive chairman to executive chairman of HP's board.

Referring to Apotheker, Lane said the board believes "the job of the HP CEO now requires additional attributes."

The board also plans to appoint an independent director.





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