Posted on 05/22/2014 3:18:39 PM PDT by blam
Tyler Durden
05/22/2014 16:26 -0400
The biggest scandal in today's release of Hewlett Packard Q2 earnings was not that it hit 30 minutes prematurely, catching algos unaware and unable to BTFD when the stock tumbled on what was a revenue miss and 1% decline from last year, nor that the company guided below estimate, pushing its stock some 3% lower in the last minutes of trading.
The biggest scandal was this disclosure in the second quarter results press release: "As HP continues to reengineer the workforce to be more competitive and meet its objectives, the previously estimated number of eliminated positions will increase by between 11,000 to 16,000." This is in addition to the 34,000 layoffs already noted previously, meaning HP will fire a total of 50,000 in the near future.
Want to know why HPQ is forced to fire so many well-paying jobs it once again makes a mockery of anyone who claims there is some economic recovery going on?
The chart below, which compares the company's quarterly CapEx, declining (so no, not increasing as some clueless sellside analyst hacks claim) by 16% from last quarter and down 4.5% from a year ago to $840 million and thus leading to less growth opportunities for the company and resulting in tens of thousands of pink slips, and the soaring amount of stock buybacks, which rose by nearly 50% in Q2 from Q1 to $831 million and by 27,600% (!) from a year ago, the most since 2011, should provide all the answers.
So dear soon to be laid off Hewlett Packard employees, if you want to direct your anger somewhere, please direct it at the company's "activist" shareholders who have forced management to invest not in growth for the future, and thus you,
(snip)
(Excerpt) Read more at zerohedge.com ...
“The current CEO, Meg Whitman, is worthless as well.”
Tokens “playing man”...
HP - The Stupid Republican Woman Company
The comment was in relation to outsourcing.
Sounds like it has the ring of reality to me.
What crap mine is. Keeps saying it is out of paper when it is full of the stuff.
Never again.
Hmmmm.
Compaq was started by 5 engineers for TI's Houston site where I worked for 20 years.
I don’t know why anyone would ever own an ink jet printer?
They cost a fortune to operate compared to a laser.
As an HP shareholder, I'm a bit concerned, but I'm not panicking. Today's stock price decrease was about 2 1/2 %, nothing scary - at least not yet.
Perhaps all this gloom and doom talk is a bit overdone? I recall similar talk about IBM 20 years ago and IBM is still pretty strong, as far as I know.
FORMERLY_GREAT_AMERICAN_COMPANY_PISSED_AWAY_PING!
I didn’t know about the TI/Compaq relationship. Those sure were exciting times.
From Wikipedia: http://en.wikipedia.org/wiki/Digital_Equipment_Corporation
“DEC was acquired in June 1998 by Compaq, which subsequently merged with Hewlett-Packard in May 2002. Some parts of DEC, notably the compiler business and the Hudson, Massachusetts facility, were sold to Intel.”
I got chopped from DEC in 1998. Thought I would be a lifer there - go figure...
I went to replace a printer with another HP Lazer, been using them since they came out, Piece of plastic trash. Actually thinking of fixing my old one.
I thought it was bloatware that was crapping up my old HP. Anyway, I will never buy another computer because of their software.
I was surprised when I asked an IT guy what he thought were the best laptops, and he recommended a Panasonic Toughbook and some HP model.
Ken Olsen missed the PC train.
Now, HP isn't even a good printer company anymore. Just close it up, no one's gonna miss it.
Carly Fiorina RUINED that company to the point it will never recover.
I'd won a Technical Innovation award from HP in 2002. The award ceremony was in Chicago, Carly Fiorina was presenting the awards to the award winners.
I refused to have my picture taken with her. Didn't really care if I got the award that night either. I was so pissed at what she was turning that company into.
Nah, these were exciting times when I used to drink with this guy and work for Dave Talbert at National in the mid-late 60's.
“Ken Olsen missed the PC train. “
You got that right.
Wow - genius. And now, National Semiconductor is owned by TI. I just got back from the TI campus in Dallas where my daughter is working. DEC used to be just down LBJ. EDS was in Plano (now owned by HP). She thinks of me as a relic - talking about the “old” days. Those major players are now footnotes in someone else’s biography.
She's correct.
The stock market doesn't seem to think so. The price is up 6% today (Friday) so far!
HP can burn their customers only so many times. I have had to abandon a functioning hp scanner since they would not update the drivers for a new operating systems. I have had to discard expensive hp ink cartridges as they would not work past their expiration date even though they had never been used. I had dual hp monitors. One died while under warranty. The replacement refurbished monitor would never match color with the remaining original one. NO MORE HP ANYTHING FOR ME!
I now use Brother laser printers. They are superb. Brother always updates drivers for new operating systems.
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