HP beats the street; Leo Apotheker raises morale

Leo Apotheker's prescription makes Hewlett-Packard staff feel better, curing Hurd syndrome.

Léo Apotheker (HP)
By Richi Jennings. November 23, 2010.

Hewlett-Packard announced its Q4 results, and they were clearly better than Wall Street had expected. New CEO Leo Apotheker also had a few holiday gifts for HP employees. In IT Blogwatch, bloggers run the numbers.

Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention Translating John Pistole's TSA spin...


It's been a while since we heard from Nancy Gohring (with fried egg):

CEO of Hewlett-Packard ... Leo Apotheker on Monday ... discussed the company's quarterly earnings report ... fourth-quarter net revenue ... up 8%. ... Net earnings for the quarter ... up 5%.


One area of growth he has already identified for HP is in software, which currently represents 3% of revenue ... [which] grew 1%. ... Services revenue increased just 0.4%. ... Its storage and servers business ... [grew] 25%. ... The personal systems group's revenue grew 4% ... the imaging and printing group was up 8%.

Chris Nerney takes stock:

Shares of Hewlett-Packard ... climbed in after-hours trading ... [on] a profit of $2.5 billion ... [and] revenue of $33.3 billion. ... Adjusted income for the quarter was $1.33 a share, up 17 percent. ... Consensus estimates called for earnings of $1.27 a share on revenue of $32.7 billion.


HP shares closed Monday at 43.25 and rose to 44.46, or 2.8 percent, after hours. ... The company forecast ... adjusted earnings ... for the current quarter ... of $1.28 to $1.30 a share. Analysts had been predicting ... $1.22.

Damien and Derek Hoffman say that HP beat the naysayers:

Mark Hurd is long gone and Hewlett-Packard has been on the shareholder hot seat ever since. ... [The report was] packed with a revenge punch to Wall Street analysts, investors and traders. ... 4th quarter revenue was up 10% in the Americas.


When the Hurd drama wore off, the value buyers stepped in and ... picked up the underlying strong fundamentals. ... Following a great report, HPQ shares could continue to see upside ... if the company ... remains focused more on the basics and less on the drama.

And Larry Dignan reads between the lines:

The results indicate that HP has been able to execute amid distractions—notably the saga with the Oracle and SAP TomorrowNow trial. ... Apotheker said that “a competitor” has tried to distract HP repeatedly, but was unsuccessful.

Meanwhile, Jay Yarow says employees are "rejoicing":

HP is raising salary levels back to where they were pre-financial crisis, new CEO Leo Apotheker just told employees.


One employee just told us: "He's basically giving back the pay cuts Hurd put in place last year, returning the 401-(k) to a fixed ... match, increasing funding for employee awards and putting some money out there for raises. ... He said he was going to listen to employees ... lo and behold at about the first possibility he acts on that feedback. What a nice change.".


And Finally...

Translating John Pistole's TSA spin
[hat tip: Cory Doctorow]

Don't miss out on IT Blogwatch:

Richi Jennings, your humble blogwatcher
  Richi Jennings is an independent analyst/consultant, specializing in blogging, email, and security. A cross-functional IT geek since 1985, you can follow him as @richi on Twitter, pretend to be richij's friend on Facebook, or just use good old email: itbw@richij.com.

You can also read Richi's full profile and disclosure of his industry affiliations.

Copyright © 2010 IDG Communications, Inc.

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