NEW YORK (CNNfn) - Hewlett-Packard Co. shares slid nearly 5 percent Tuesday morning as investors backed away from Monday's anticipatory run-up to the computer maker's strong fiscal third-quarter earnings.
Hewlett-Packard stock dropped 5-5/16 to 104-15/16 in mid-morning trading.
Investors locked in gains after HP late Monday reported a 37 percent increase in operating income from the prior year, according to Art Russell, technology analyst at Edward Jones. In anticipation of the report, the stock rose more than $8 a share in Monday trading.
Before one-time charges, HP earned $853 million, or 85 cents per diluted share, beating Wall Street estimates of earnings of 80 cents per share.
In addition to the gain-taking, analysts also said the company's 11 percent revenue growth had come in a bit weaker than some had forecast.
In addition, Hewlett-Packard (HWP) expects to incur about $160 million in costs related to the division of its company into two publicly traded firms -- a measurement and test company and a computing and imaging company.