Despite beating estimates for both sales and profit,Hewlett-Packard posted an outlook for 2012 below what they were looking for.The pc business was down 2% in Q3,and printing was off about 10%.It looks like the company is resetting the bar,says analyst Aaron Rakers,CFA,Managing Director at Stifel Nicolaus.A lot of downward revisions have already been baked into the stock,and people are hopeful for upward revisions now.
Under new CEO Meg Whitman,the company is keeping the pc business and its economies of scale,leveraging the volume of what the pc business brings.Job One for Meg Whitman is resetting expectations.She must also bring cohesiveness to HP's management team.
Mr.Rakers is neutral on the stock.In order to upgrade it,he needs to feel comfort with the various competitive dynamics across HP's business segments.
Meg Whitman replaced Leo Apotheker in the top job at the firm.She had been CEO of eBay and a candidate in the 2010 California governor's race.
Hewlett-Packard(HPQ)
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