Boston, MA 02/25/2013 (wallstreetpr) – Hewlett-Packard Company (NYSE:HPQ) shares saw a 16 percent hike by the end of last week. The company had exceeded projections and its quarterly results as well and at least 8 prominent brokerage firms had subsequently raised their price targets on its stocks though this was not really an indication that the worlds topmost PC makers incessant problems were at an end. The economic slowdown had prompted IT corporates to cut costs and sales had dropped drastically over the last one year. What added to the company’s woes was the fact that mobile devices like tablets and smartphones were taking the place of computers and were eating into their market share. In this bleak computer market scenario it has come as no surprise that close to 17 percent of the company sales were attributed to copier, printer and related services sales.
Effective planning and execution
Dynamic Hewlett-Packard Company (NYSE:HPQ) CEO Meg Whitman has a turnaround plan to cut costs to deal with the drop in market demands. Market analysts have noted that the immediate danger of the bottom falling out has diminished as the company is tacking and blocking in a more effective manner but many of the businesses are still straining under the pressure. What probably added to the 20 percent increase of the Hewlett-Packard Company (NYSE:HPQ) stocks since the beginning of the year was the buy out offer that Shares of Dell Inc (NASDAQ:DELL), its competitor had received. The latter saw every major business division taking a hit and its profits dropped 31 percent.
More than just corking measures
It seems that Whitman has been wielding the proverbial whip since the time she took over the Hewlett-Packard Company (NYSE:HPQ) a year ago and has made no bones about the fact that the company will be facing a very tumultuous 2013. Apart from other cost cutting measures she will also be downsizing the HP workforce by 10 percent and close to 29,000 jobs stand to face the axe. In addition to this, the spin off of HP’s PC division was also reversed by her. Whitman is on a mission to get the company back on track and whether the market supports her efforts are left to be seen.
Shares of Hewlett-Packard Company (NYSE:HPQ) went up by 12.28% to close at $19.20
Shares of Dell Inc (NASDAQ:DELL) went up by 0.72% to close at $13.92
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