Is HP Turning the Corner? HP Quarterly Forecast Beats Expectations

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News Posted: Fri, Feb 22 2013 2:42 PM
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.

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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.
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Super Dave replied on Fri, Feb 22 2013 10:06 PM

I like Meg Whitman a lot, and if anyone can turn HP around after the Leo Apotheker disaster I would put my money on her. Meg ran for governor of California a while back, and I was sorry that she lost to Jerry Brown. California has a whole laundry list of problems that I won't go into, but I read a great article titled The Best and Worst Run States in America that will give you a good idea of what I mean. Meg lost the California election to Jerry Clown, but I think HP is in better hands because of it. Good luck to her!

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