It stands to reason that a change in executive leadership, particularly when that new CEO is brought in from outside the firm, is going to lead to significant changes in how a company operates. After all, why would a new CEO want to risk losing the honey pot that is a Fortune 500 pay package, as a consequence of the prior CEO's mistakes? To that end, then, Hewlett-Packard (NYSE: HPQ) shareholders should be in for a stretch where the company reports some kitchen sink quarters, tries to clean up past mistakes and forge a new path to better performance.
A Sluggish End to the Year
HP didn't report a very strong quarter to close its fiscal year, but there is no particular reason that anyone should have thought it would. Revenue declined 3% from last year, but did rise 3% from the third quarter, missing consensus by a small amount. Software was the only operating area of notable growth, as HP posted a 6% improvement in organic sales. Services wasn't great, up 2%, but that was better than servers/networking/storage, PCs and printing, which were all down from last year.
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