When Meg Whitman took over the top spot at HP
about a year and a half ago, she inherited a huge mess--and she wasn’t shy about it, fully acknowledging to investors back in October
that revenue would drop in almost all areas of HP
’s businesses, and that a recovery would take several years. In other words, things would get worse before they got better. Her honesty sent HP’s shares tumbling.
Whitman has taken a firm hand at HP, slashing jobs and making cuts to bring the company back to profitability, and there’s some indication that she’s put HP on the right track. According to a Reuters report, HP beat Wall Street estimates by producing quarterly revenue of $28.4 billion. Granted, that’s still a reduction of about 6% from where its revenue was, but Wall Street figured that the company’s revenues would be closer to $27.8 billion.
It’s worth noting that Whitman reiterated HP’s dedication to the PC
market and stated that she wouldn’t be breaking up the company, although she did allow that HP needed to address the mobile
market, among other areas, by refocusing some resources away from its core PC business.
Nobody at HP is exactly dancing in the streets, but this is a good sign that the company’s long, painful recovery is at least on schedule. Whitman was a somewhat surprising choice as HP’s CEO, but it looks like she knows what she’s doing; if her plan succeeds, HP will be thriving again by 2016.