H-P now -6.2% AH; company doesn't expect FY14 rev. growth

Meg Whitman on the CC: "Total company [Y/Y] revenue growth in [FY14] is unlikely." Ongoing PC and services challenges are blamed for the outlook. H-P (HPQ) is currently expected by analysts to see a 2.2% FY14 rev. drop.

More from Whitman: "We see a continued weak enterprise spending environment. Sentiment in the U.S. is improving ... I would characterize Europe as challenging and China continues to be soft." Also, "continued pricing pressure" is expected for PCs, printers, and (thanks to Dell?) x86 servers.

Investors have already been on edge about enterprise IT spending thanks to Cisco.

Whitman doesn't hesitate to throw Dave Donatelli under the bus - she calls H-P's enterprise hardware performance "very disappointing - and suggests the unit's problems are due to execution rather than technology (they'd better be, given R&D is less than 4% of revenue and declining).

AllThingsD reports Whitman and Donatelli "had a difficult relationship" even before Donatelli's reassignment, thanks in part to server share losses to Dell.

Management strikes a relatively upbeat tone about printing, and says traction for H-P's Ink in the Office initiative has been good.

FQ3 free cash flow was $2B, above net income of $1.7B. The presence of "material non-public information" is said to have curtailed buyback activity.

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Comments (3)
  • Davidoff
    , contributor
    Comments (409) | Send Message
    Good. HPQ share price will go back to reality.
    21 Aug 2013, 06:11 PM Reply Like
  • TippingPoint
    , contributor
    Comments (165) | Send Message
    This is about what I would expect here in Year 2 of what the CEO has previously said would be a 5 year turnaround. Moreover, the world economy basically sucks. Whitman knows that cash flow is king, and the fact is that HP can create a lot of shareholder value and provide decent returns just by paying down debt.
    21 Aug 2013, 07:03 PM Reply Like
  • mitrado
    , contributor
    Comments (2033) | Send Message
    You're absolutely right, TippingPoint.


    I don't get how the world's CEOs expect to have eternal growth when they don't even raise the wages of their workers!


    What is the people supposed to do? Stop eating in order to buy other products and services? As if.
    22 Aug 2013, 03:31 AM Reply Like
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