A lot of analysts look at Fridays as slower-paced days where they can tie up loose ends, get out early, and work on their golf game. Hewlett-Packard (NYSE:HPQ) pretty much trashed that idea for tech investors, though, with an avalanche of information and major transformational changes. While Hewlett-Packard has given people a lot to chew on, a few basic ideas emerge - the company is taking a new strategic direction that makes sense (but will take time to realize), current performance is not very good at all, and investors are going to have to be patient to get value out of this name.
Earnings Looking Pretty Sad
Hewlett-Packard announced that reported revenue rose 1%, while currency-neutral revenue fell 2%. These are admittedly not great days for big tech (and Dell's (Nasdaq:DELL) revenue growth was similar), but those results are fairly pathetic when compared to IBM (NYSE:IBM), EMC (NYSE:EMC), or Cisco (Nasdaq:CSCO).
Software was pretty strong (up 20%) and financial services (arguably a non-core business) revenue was up 22%). Enterprise servers, storage and networking (ESSN) did alright with 7% growth, while services grew 4%. Personal systems (PCs, mostly) dropped 3% and the imaging and printing group saw revenue fall 1% for the quarter.
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