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 ...
I pity the poor fool who gets stuck holding that stock when the market wakes up, gets some common sense and realizes HP isn't even a good printer company anymore.
If the market thinks that cutting 30,000+ employees will return HP to sustained profitability, they've got another thing coming.
“Carly Fiorina RUINED that company to the point it will never recover.”
Perhaps but they all got extensive sexual harassment training which looks really good on a resume.
You’re talking about the stock market like it isn’t rigged or something. There’s been a tank of funny money over the market since 2008.
I remember when a 500 point swing in the market was no big deal. When Clinton came after Microsoft, the market dropped 500 in an hour. Nobody batted an eye.
Now its rare it swings 250 points, and each day almost always ends up, no matter what.
HP lays off 50,000 - the market should tank, because its an infrastructure play.
HP sold it’s soul back when they sold their test equipment.
One good example of their ineptness is leaving OpenVMS virtually fallow.
As security becomes more and more important (and a bigger issue) having an OS with an architecture built with security (and reliability) in mind will become more and more important.
The first company that puts out a fully formally verified OS is probably going to get a *GREAT* headway in the market.
Really?
What did you work on?
I actually like MS a bit more than HP — at least MS does seem to be pushing some innovation/care for products, HP not so much.
I'd bet on MS to put out a fully formally verified OS before HP (I'd bet Linux will never be fully verified).
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