After stumbling several years ago, the company set up a five-year turnaround plan that is now in year two. Hewlett-Packard's earnings, scheduled for release after the market close Thursday, will tell us how well that plan is faring.To continue reading, please click here...
Tech Stocks: Can Meg Whitman Deliver the Next Great Turnaround?
Meg Whitman is aiming to be Hewlett-Packard's Lou Gerstner.
Gerstner was the CEO of International Business Machine (NYSE: IBM) from 1993 until his retirement in 2002, and is widely credited for IBM's turnaround.
How did he save IBM from going out of business and reverse its fortunes?
Well, among other things Gerstner made the difficult decision to lay off more than 100,000 employees shortly after his arrival.
And now Meg Whitman, CEO of Hewlett-Packard (NYSE: HPQ), has taken a page from IBM's playbook.
On Wednesday, Hewlett-Packard announced it would lay off 27,000 employees, or roughly 8% of its worldwide workforce, over the next two years.
HP hopes the layoffs will save the company $3 billion to $3.5 billion and it plans to reinvest those savings in research and development, innovation, and the overall quality and design of products.
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Hewlett-Packard Co. (NYSE: HPQ) Earnings Disappoint, Still a Tech Stock to Avoid in 2012
Hewlett-Packard Co. (NYSE: HPQ) delivered disappointing earnings today (Wednesday), showing new CEO Meg Whitman is still working on nursing the tech giant back to health.
Hewlett-Packard's adjusted earnings per share were 92 cents on revenue of $30 billion in the first quarter, while Wall Street was expecting H-P to earn 87 cents on sales of $30.67 billion.
Earnings fell 32% from the same period a year ago, and revenue slipped 7%.
H-P is the world's largest PC maker, but its glory days are long gone. Over the past year, H-P stock has fallen about 40%.
Hewlett-Packard Co. Stock Price History
Its financials for the November - January fiscal quarter illustrate the steep climb H-P faces to regain its profitable leading spot.
"All [its] segments are going to have headwinds," Abhey Lamba, an analyst at Mizuho Securities USA Inc., told BusinessWeek. "It's not going to be a one-year turnaround." To continue reading, please click here... Read More...