HP Earnings Outlook Clouds, Stock Price Declines
October 4, 2012 8:37 AM
comment(s) - last by
HP expects good news in fiscal 2014
HP was once one of the most profitable and stable companies in the technology and computer industry. The company's fortunes have changed as more consumers move away from traditional desktop and notebook computers to
tablets and smartphones
. HP CEO Meg Whitman issued a warning yesterday of an unexpectedly severe decline in earnings for fiscal 2013.
The announcement warned investors and analysts that revenue would fall in every single HP division except software. The decline in revenue sent shares in HP plunging to a nine-year low. Whitman has been banking on transforming HP into a significant player in the enterprise computing environment to take on both IBM and Dell.
Analysts on Wall Street hoped for better signs of progress on Whitman's plan to turn the ailing computer giant around. Whitman told investors that signs of recovery for HP would become visible in fiscal 2014 when the company's investments begin to pay off. Blame is placed on an unexpected executive turnover during the past several years as a reason for delaying the turnaround at HP.
"I was surprised that nothing new was really said in terms of strategy, and the problem here is there is lack of investor confidence in the current strategy," said Shaw Wu, an analyst with Sterne Agee.
HP CEO Meg Whitman [Image Source: Silicon Angle]
On Wednesday, HP's stock price declined by 13% marking the largest single-day decline since August of 2011. HP's enterprise services division is looking at a particularly dark outlook. Revenue from HP's enterprise services division is expected to decline between 11 and 13% for fiscal 2013 while barely turning a profit. Reuters reports that operating margins for the enterprise services division will be somewhere in the range of 0 to 3%.
"The single biggest challenge facing Hewlett-Packard has been changes in CEOs and executive leadership, which has caused multiple inconsistent strategic choices, and frankly some significant executional miscues," Whitman told the investor conference in San Francisco.
"This is important because as a result it is going to take longer to right this ship than any of us would like," she added.
This article is over a month old, voting and posting comments is disabled
new direction for HP
10/4/2012 10:14:47 AM
HP needs a New Direction,-- and that would be: Customer Support.
in a market where products have become commodities the best customer support can be a factor in market share
I have a HP 6500a Deskjet. The print driver doesn't work right* and anything scanned or copied or faxed using the document feeder leaves a vertical steak down the center of the page.
I called HP support about the print driver and they demanded money. where i come from the only people who have to pay when the other party makes an error work for Dilbert.
now my plans for the HP 6500 are: Junk barrel.
* I can't scan from my Windows system; only from my Linux box. The Linux box doesn't use the fancy HP device support package.
RE: new direction for HP
10/4/2012 12:08:49 PM
Better yet, why are print drivers 500MB? I can't figure out how to write a program that big!
I think people in Palo Alto need to ask what the Q in CompaQ stands for. (COMPAtability and Quality).
"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
Analyst: HP is Going to Bet the Farm on Second Smartphone/Tablet Push
September 28, 2012, 5:27 PM
Quick Note: Verizon May Become Canada's Fourth Major Carrier
June 18, 2013, 2:15 PM
BMI Files Lawsuit Against Pandora Over Royalty Fees, Radio Station "Stunt"
June 14, 2013, 1:28 PM
Ukranian-Led Cybertheft Ring Busted, Six East Coast Residents Arrested
June 13, 2013, 10:38 AM
Rep. Peter King (R) on NSA Leaks: Prosecute the Journalists
June 12, 2013, 4:00 PM
Comcast to Turn Customers Modems Into Quasi-Public Wi-Fi, Raises Legal Risks
June 10, 2013, 8:02 PM
Report: Google to Drop $1.3B for Waze Navigation Software
June 10, 2013, 7:43 AM
Most Popular Articles
Source: Don't Worry, NSA Spies on "99 Percent" of Americans' Locations, Call Records
June 14, 2013, 3:57 PM
Xbox Chief: If You Can't Get Online, Don't Buy an Xbox One
June 12, 2013, 9:57 AM
GigaHertz Wars 2.0? AMD Releases World's First 5.0 GHz FX Processor
June 11, 2013, 3:16 PM
Former Palm CEO: Selling Palm to HP was a Waste
June 12, 2013, 10:19 AM
Report: Apple to Release Larger iPhone Screens, Cheaper iPhone for $99
June 13, 2013, 9:41 AM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information