CALIFORNIA, United States — AFTER a leaked memo from the CEO Leo Apotheker warned of a rough path ahead, Hewlett-Packard Co cut its full-year outlook yesterday, citing a trifecta of woes that include the earthquake in Japan, soft PC sales and weakening performance in its crucial tech services business.

A higher net income for the quarter was overshadowed by what lies ahead for the world’s No 1 PC maker, and company shares fell more than five per cent before the market opened.

HP reported earnings of US$2.3 billion, or US$1.05 per share, for the three months that ended April 30. That’s up from US$2.2 billion, or 91 cents per share, in the same time last year.

Excluding special items, HP earned US$1.24 per share in the fiscal second quarter, ahead of the US$1.21 per share that analysts polled by FactSet were expecting.

Revenue climbed three per cent to US$31.63 billion, slightly above Wall Street expectations of US$31.55 billion.

Yet HP now expects earnings of US$5 per share for the year, short of its earlier predictions of between US$5.20 to US$5.28 per share, and below Wall Street expectations of US$5.24.

The company also lowered its 2011 revenue guidance range slightly, to between US$129 billion and US$130 billion. In February it had forecast revenue of US$130 billion to US$131.5 billion. Analysts are predicting US$130.47 billion.

The company’s outlook for the current quarter also left investors wanting.

HP is forecasting adjusted earnings of US$1.08 per share and revenue between US$31.1 billion and US$31.3 billion. Wall Street was looking for adjusted earnings of US$1.23 cents per share and US$31.84 billion in revenue.

The company reported its quarterly results a day early after a leaked memo from Apotheker warned that the company was bracing for “another tough quarter” in the May-July period, and that management needed to “watch every penny and minimise all hiring”.

HP is wrestling with poor demand from consumers even as business spending has begun to recover.

In addition to the earthquake and weak consumer PC sales, HP warned of falling operating profits from technical services, one of its most important businesses. This segment faces growing competition from smaller companies offering technology outsourcing and other services.

Shares of the Palo Alto, California, company fell US$2.13 to US$37.67 in premarket trading.