Rebuilding Investor Confidence
One analyst asked how can HP regain the confidence of the investors. Whitman answered that only through meeting commitments will that happen, and promised to work with the major analysts to explain what HP is doing to to hit her numbers.
Q4 Guidance
Cathie Lesjak, HP CFO, reaffirmed Q4 EPS targets while warning of slowing demand in government and European markets. Lesjak advised caution on sales guidance while reaffirming GAAP EPS targets of between $0.44 and $0.55 per share.
What Does All This Mean?
Leo Apotheker lost the confidence in the board to execute the strategies and to understand the operations in enough detail to drive results. While the board believes that the strategies are sound, they needed a new leader who could drive results, foster teamwork in the executive ranks and communicate with the Street. Whitman fits the bill in their minds, and since over half of them had nothing to do with picking Apotheker, their choice makes sense.
webOS devices are dead. HP continues to evaluate how to extract value from the software side.
PSG may or may not be spun off, and we should know by year end.
Autonomy is on track to be purchased before the end of the year.
HP (NYSE: HPQ) closed today at $22.80, off 4.92%.
As a long-time customer of HP, I wish Whitman and the team the best of luck.
Great Job Jim, You really did a great job in getting all the essential facts and putting it in understandable Black and White that can be understood by all.
Reading between the lines…No surptise on the Touchpad products remaining buried, it would be to costly to reserecte that corpse. On the PSG end of it (There PC consumer business) I think there trying to stop what may have been one Leo potentially fatal mistakes without it making it look like the screwed up in the first place going along with Leo’s Decesion to initially axe it.
Like you said I wish them the best of luck, I have been buying there Office equipment for the last 12 years and thier PC’s for the last 5. They have really come along way in delivering a quality product.
Thanks, John. I appreciate the compliment. HP has some tough quarters coming up!