HP warns investors to expect a rocky 2013; stock tanks | webOS Nation
 
 

HP warns investors to expect a rocky 2013; stock tanks 15

by Derek Kessler Wed, 03 Oct 2012 6:19 pm EDT

HP, profit, stock

Maybe it's a good thing the webOS GBU is going to be divorcing splitting itself from HP, as the parent company is gearing up for a year that even has pessimistic analysts and investors caught off guard. HP today issued guidance for fiscal year 2013, expecting profits to come it at $3.40-$3.60 a share, which is well under the $4.16 average guesstimate given by the analysts that cover HP. Normally those analysts aren't far off, but a miss this big is cause for alarm - as indicated by the nearly 13% drop in HP's share price today.

The drop in earnings is expect to be a "broad-based profit decline", i.e. HP expects a drop in profit across their entire business (enterprise services in particular is expecting the coming year to have revenues lowered by 13% and profits at next to nothing). In a weird statement, according to Business Insider, HP CEO Meg Whitman told investors that the company will be "more contained" in 2013. Whatever that means. By 2016, HP expects their revenues "to be growing in line with gross domestic product" with profits growing faster than that, thanks to "industry-leading margins and disciplined capital allocation." In other words, HP wants to operate on a fiscal sense more like Apple (high margin, low cost), though for that to happen they'll have to continue to make significant changes to the way they do business, starting by making all of their products more desirable.

Source: HP; Via: Business Insider

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15 Comments

i thought it already tanked

it did. it's tanked several times over the past many years.

karma.

They're already dead. Just waiting for the corpse to hit the floor. The market is going to "make things right" "in the coming months". Time to "think beyond" HP.

OK...that is the best response ever.

i still find it amusing that hp bought palm, broke it, then spun it off.

you tell me what happened in the middle that didn't have to happen

I am not surprised by this. HP has lacked vision for a very long time and without vision a company can not succeed. They had such a huge chance with webOS. They could have reinvented their whole business which would have taken time and money but could have payed off big time. Now they have a tanking personal computer business, no consumer tablet, a vaporware enterprise tablet, and no mobile phones. They are going to continue to bet the bank on super thin profit margins in the windows ecosystem... Good luck with that HP.

Such a waste...

Totally Agree

Somebody plz buy hp n fire everybody n hire some smart ppl.

Funny. Nino Brown and Michale Corleone would be like, "What did that guy say?"

I know where that headline photo came from. It came from the back of our scratched to s*** pre 3's. Products built so worthless they couldn't even get their logo right. I'm glad to see them fall like Icarus. " we're all in on webos" haha yeah I'm all in on hp's future!!!

Let's see, HP buys Palm and their stock peaks. HP quits Palm and their stock tanks. Coincidence?

Actually, yes! HP is dying because they are short sighted and led by a blind board. They need to be in markets that are technology driven, but they have no technology to offer. Smartphones and tablets drive today's consumer companies and they are not a player in either market. It's not that their product is not number one, it is that they do not even have a product!

They offered a sub par tablet and smartphone lineup. I love Webos, but let's face the facts. The products they offered were not competitive. Their egos said if it had HP on it, it was good enough. (the Pre3 might have been good enough, but they never released it. ) Then they just bailed instead of working to make it better.

No Heart, No innovation. HP is on a fast decline into oblivion. Their days of buying companies are over. They will being selling assets from now on.

Today is a sad day. My father worked for H-P for 20 years, he left in 1998 to pursue some different business ventures, but I was able to grow up knowing The H-P Way. I went to the company picnics, witnessed the thrill first hand of working for such a great company. Bill and Dave were visionaries in regards to products AND MOST IMPORTANTLY how they treated their employees. The Googles and Facebooks of the world wouldn't be what they are today if Bill and Dave didn't start H-P, they were the first pioneers of "employees first". If they could see H-P now, they would cry.

Anyway, my father purchased H-P stock in my name when I was a kid. It was supposed to be for my college education. However, when I was old enough to go to college, we were financially strong enough to pay for it, so my dad gave me the H-P shares. I said to myself on that day that I would never sell this stock and I would do the same thing for my children that he did for me and my sisters.

Well, today I sold those shares. I just can't own shares of a company that I no longer believe in. I feel a great amount of sadness right now and I guess I'm letting it out here. Shares that once could pay for an entire college education can now barely pay for a car.

If you get one thing out of reading this, just remember that H-P was once a great company, built by two great men who literally did things that changed the world. That H-P does not exist today. I wish we could call the company by a different name because Bill and Dave don't deserve to have their names maligned like this. It is truly sad what their successors did to a once great company.

I can only take some solace in the fact that the "true H-P", the test and measurement company that H-P was started as, was spun off in 1999 and continues the H-P legacy. That company is Agilent Technologies.

Looks like doubling down on failure is a "marathon and not a sprint". Ahhhahaha....

hmm...

my first reaction to the article took a different slant than commenters before me.

i trust Ms. Meg about as far as i can throw her. and she threw a boatload of money into her campaign nightmare; she has no problem spending heavy. what about this angle:

we already know MS wants to come up with some mobile superstar to compete with Apple, and HP may have just demo'd it on their new biz tab w/ Win8. Reading the PR response to the criticism of their poor resolution issue, i'm thinking HP may be getting on knees to obey MS biz commitments. and getting ready to start blowing mad cash on MS spending levels to do it.

If Meg is going to run things "more contained", that means she's reeling lines in, and getting ready to redirect cash in a very specific way.

ideally she'd want to release the next few gens of MS pads to compete with Apple. To heck with trying to grow webOS from a great smart phone OS to something on the level of Win8. No wonder our baby got dumped. It's not about phones anymore. It's about full, secure mobile business transactions on tabs. made safe through protected, isolated cloud services which they also offer. hey, who's doin that? oh yeah, dell, ibm, etc.

security, cloud svcs, and mobility are the top money markets in the coming years for tech biz. they HAVE to invest there. so a little less profit payout to put the money into dev. with MS.

of course, there's plenty of chance for them to screw it all up. they do that. and we'll laugh. because we hate them. because we just wanted a really good phone, saw it, smiled, and then watched them throw it off the cliff the very. next. day.

we'll see.