Tomahawk, WI 7/22/2013 (Basicsmedia) –

Financial Comparisons

HPQ Total Returns Comparison

This total returns chart shows the returns to an investor from both price appreciation and dividends (dividends are assumed to be reinvested). Hewlett-Packard is up 18.28% over the last year vs S&P 500 Total Return up 28.77%, Dell up 14.43%, and Apple down 19.36%

EPS Diluted Quarterly

Looking forward to the third quarter, HP sees earnings of 56 to 59 cents a share and adjusted earnings of 84 to 87 cents a share.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability.

For the full year fiscal 2013, the company now expects earnings of $2.50 to $2.60 a share and adjusted earnings of $3.50 to $3.60 a share. Previously, the company had expected earnings of $2.30 to $2.50 per share and adjusted earnings of $3.40 to $3.60 a share.


Before concluding the remarks would like to quote Whitman –

“After returning more than a billion dollars to shareholders through share repurchases and dividends in the quarter, we improved our operating company net debt position for the fifth successive quarter,” said Whitman. “By the end of fiscal 2013, we expect our operating company net debt to be below pre-Autonomy levels and approaching our goal of approximately zero.”

At the end of the day, Whitman will need to address her company’s sales declines, as the cost-cutting will only be a bandage solution and not a resolution for the longer-term viability. In other words, my stock analysis suggests that Hewlett-Packard may be faking you out. I am just not sure where the growth is going to originate from. One thing is for sure; it’s not going to be the PC segment, as this area will only get softer, based on my stock analysis. The mobile sector continues to be a major growth area, but Hewlett-Packard has a lot of work ahead. It will take years to turn Hewlett-Packard around, according to Whitman, as the company looks at streamlining its product line and producing a leaner, more efficient technology company.

My stock analysis indicates that the company’s lack of exposure in the surging mobile business is problematic. But this could change, as Hewlett-Packard now has a dedicated group responsible for growing the mobile business; albeit, we need to see some progress in this area.

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