HP beats the street: Did firing 34,000 workers work?

Lame PROFIT!!! meme

Wait. Did I say 'fire'? I meant to say WFR and EER.

In surprise news, HP (NYSE:HPQ) is doing well. Bill 'n' Dave's formerly-eponymous company -- we used to call it Hewlett-Packard -- made more money than expected last quarter.

Meg Whitman seems to be building a solid defense for her strategy of workforce-reduction, enhanced early retirement, and business-refocusing.

In IT Blogwatch, bloggers invent reasons for Whitman's success.

Your humble blogwatcher curated these bloggy bits for your entertainment.

 

Ian King rules: [So Greg Keizer is deposed? -Ed.]

[HP] reported fiscal first-quarter sales and profit that topped analysts’ estimates.

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["Adjusted"] profit, excluding certain costs...was 90 cents a share on revenue of $28.2 billion. ... Analysts had on average predicted...84 cents [and] $27.2 billion.

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Meg Whitman is trying to reshape the 75-year-old company. [HP's] sales of servers...may be benefiting as [IBM] exits part of the market. [HP] shares rose as high as $31 in extended trading following the announcement.  MORE

 

And Steve Johnson... [Don't you dare -Ed.]

Earnings...significantly beat Wall Street's expectations, although its sales were slightly down. ... The Palo Alto corporation said it earned a $1.4 billion profit...compared with $1.2 billion...during the same period a year ago. ... That worked out to fully reported earnings of 74 cents a share. Analysts...generally had expected 65 cents.

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On a year-over-year basis, HP's sales have fallen steadily...largely been due to dwindling sales of its personal computers and printers. ... Since becoming CEO in September 2011, Whitman has cut expenses -- including a total of 34,000 employees.  MORE

 

So Jack Clark grabs the can-opener: [Watch your fingers -Ed.]

"HP is in a stronger position today than we've been in quite some time," HP chief executive Meg Whitman said in a canned statement.

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HP bucked wider trends in the IT market by managing to grow its PC group Personal Systems by four percent...the first growth in seven quarters. ... HP also minted gold from its data center hardware group by growing revenues one percent...with industry standard servers climbing 6 per cent.

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As usual, its...Itanium-based "Business Critical Systems" continued to decline...falling 25 per cent. ... Enterprise Services saw a major decline of 7 per cent, along with software which shrank 4 per cent...financial services, which fell 9 per cent, and Print was down 2.2 per cent.

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Though we're sure the champagne corks are popping in Palo Alto...HP workers are likely to be staring rather glumly into their drinks as Whitman's...scythe hovers above.  MORE

 

Meanwhile, Dean Takahashi takes the results angle aside, and shoots it: [You're fired -Ed.]

As an aside, speculators have been fixated on what HP...could do in the 3D printing market. ... Whitman has only promised that HP is watching the market closely. ... Meanwhile, HP’s core market of making PCs and the printers that go with them is hurting. [But that] will likely have very little impact on HP’s bottom line for a long time to come.

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Whitman said in a statement that...“two years of turnaround work is setting us up for an exciting future.”  MORE

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