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One brokerage firm raised its rating on HP's shares while another nine raised their price targets

Hewlett-Packard (HP) certainly hasn't had the easiest of times lately with the decline of the PC industry and all. But the company managed to surprise analysts with its fourth quarter earnings (in a good way). 

According to HP, its fourth quarter revenue for 2013 was $29.1 billion -- beating analyst forecasts of $27.9 billion. HP also maintained its full-year earnings forecast.

The hike in revenue was due to growth in its enterprise group, which provides businesses with servers, storage and networking products. The company said enterprise sales increased 2 percent in the fourth quarter compared to the year-ago quarter. It rose 12 percent compared with the third quarter.

The fact that the PC industry continues to decline in the wake of mobile device releases like smartphones, tablets and convertibles is just one reason analysts didn't have high expectations for HP's fourth quarter earnings. However, the company reported a smaller-than-expected drop in PC sales for the quarter. 

HP is also shying away from the PC sector and focusing more closely on areas that have long-term promise.


Another reason analysts were surprised by HP's earnings is because of decreased sales in China. Cisco, which recently released disappointing quarterly figures, saw a decline in China. 

But HP seems to be doing well there too, as revenue in the Asia Pacific region grew 4 percent in the quarter.

HP shares rose 9 percent to $27.33 in early Wednesday trading after ratings on its shares were raised (another nine brokerage firms raised their price targets). This represents the company's largest one-day jump in the last year. 

"Through improved execution, strong cost management, and with the support of our customers and partners, HP ended fiscal 2013 on a high note," said Meg Whitman, HP president and CEO. "Our Q4 results demonstrate that HP's turnaround remains on track heading into fiscal 2014. While we still have much more work to do, our business units and their core assets are delivering on HP's strategy to help customers thrive by providing solutions for the New Style of IT."

Whitman said in October that the new game plan is "multiple operating systems, multiple architectures and multiple form factors," adding that HP is "moving quickly to produce the devices that customers want." 

Source: HP



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Good
By Samus on 11/27/2013 2:57:15 PM , Rating: 4
Looks like they are finally getting back on track to compete with Lenovo. However, I question what their mobility plan is for smartphones. They'll obviously need them to stay relevant. Considering how saturated the Android ecosystem is with cut-throat competition, and how they've unfortunately abandoned WebOS, maybe WP8 is their best bet?




RE: Good
By Motoman on 11/27/2013 5:13:11 PM , Rating: 1
Android is the safe choice though. There's probably a reasonable segment of customers (including whatever percentage of corporations that might still provide phones to employees) that could probably be swayed to buy an HP-branded Android phone instead of some other brand of Android phone. And at the very least, it puts them at parity with other such providers.

Which isn't to say they shouldn't do WP8. I think it would be a big mistake to *only* do WP8 though.

They should just have Hon Hai whip out some Androids for them and stick HP logos on them and see what happens.


RE: Good
By hpglow on 11/29/2013 2:16:29 AM , Rating: 2
Who aside from Samsung is making a profit from android devices these days?


RE: Good
By Motoman on 11/29/2013 6:28:47 PM , Rating: 2
Aside from HTC? Probably pretty much all of them. And there's a lot of them...


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By aristotlexjj621 on 11/27/2013 6:26:32 PM , Rating: 1
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RE: FIND AMAZING JOBS......
By Motoman on 11/29/2013 6:29:12 PM , Rating: 3
^ better than Pirks.


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