(Reuters) - Hewlett-Packard’s quarterly results surpassed lowered expectations and a modest earnings forecast set a low bar for new CEO Meg Whitman in 2012, reassuring investors HP is on its way to stability after a tumultuous year.
“The current quarter is fine, a bit stronger than expected.
“The outlook is important with the new management in place. We’re looking to see what will be different next year.
“They set a goal they could achieve, they wanted to put a number out there that they could hit. It’s below what I expected but, assuming by the way they phrased it, it’s the bottom of what they want to reach.
“Meg Whitman is bringing a focus to operating the business which has been lacking.”
“They reported a pretty solid quarter. It was pretty well rounded across the board.”
“They’ve really had a strong quarter. There’s a bit of a relief rally going on.
“So far so good. This is definitely a solid start. The turnaround efforts: the first decision was keeping the PC business, and it helped the quarter.”
“I would describe the numbers as stabilization. This is the first quarter in a long time there has not been a drastic change or announcement.
“It’s a classic case of no bad news is good news.
“The earnings number is indicative there’s at least some controls being put in place. Ever since Meg (Whitman) took over the business, we’ve had more clarity and more stability.
“The fact we haven’t heard much about HP in the last month is a good sign.”
“They beat on Q4, but Q1 is weak.
“Definitely, we would say HP is in transition. And I don’t think there’s a quick fix for probably five years.
“The question is how do you grow, how do you innovate? Four years-plus of mismanagement cannot be fixed in one or two quarters.
“They need to have a very strong and compelling product roadmap, they need to clean up the management ranks, and they need to expand globally.
“They are taking too much time. They are very complacent. HP should be acting like they are in the desert and there is no water around. That is the kind of survival skills they need to have.”
“The outlook is actually a positive.
“Investors were looking for a reset, a cushion to make them more comfortable. The stock is still cheap. Sure, there is pressure from the Itanium issue and there is weakness in the channel particularly from Europe. That will be an issue on the call.
“But overall, it gives investors confidence to come back into the stock.”
Reporting by Alexei Oreskovic and Sarah McBride in San Francisco and Nicola Leske in New York