Martin Reynolds:"It's just that HP is not progressing as quickly as it needs to"

Wednesday, November 30, 2022

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A week after ousting chief executive Carly Fiorina, computer giant Hewlett-Packard said first-quarter earnings and sales both gained but its figures pointed to growing competition in its flagship printer division. The company said it was pressing on with its search for a replacement for Fiorina, who engineered the $18.9bn (£10bn) takeover of Compaq Computer in 2002 but failed to wring enough benefits from the deal to satisfy the HP board. The figures for the three months to January had been keenly awaited by analysts for a detailed insight into the company's financial health after it parted company with its high-profile boss, reports This is London. Rival computer-maker Dell reported robust earnings last week, with sales up 17 percent and operating earnings up 21 percent. "Dell is more profitable, and they're growing faster," said Martin Reynolds, vice president and analyst at research firm Gartner in San Jose. "HP is missing the mark in some way, shape or form, and that has to be corrected." HP's lackluster performance has led some analysts to say the firm would be better off split up. The board has not embraced that idea. "There's nothing inherently bad about the results, Reynolds said. "It's just that HP is not progressing as quickly as it needs to." Sales grew in all the Palo Alto company's business divisions. The PC group had sales of $6.9 billion, up 11 percent from last year. Servers and storage devices brought in $4 billion, up 9 percent from last year. Revenue from services was up 20 percent to $3.8 billion. The financial service division had $555 million in sales, a 26 percent increase, and the software group had $240 million, an 18 percent increase. Imaging and printing, HP's historic strength, had the smallest increase, reporting a 3 percent rise to $6 billion, as San Francisco Chronicle informed.