HP's enterprise services business tumbles
Former enterprise computing industry powerhouse's revenue outlook disappoints.
As reported by Reuters, Hewlett-Packard Co.'s (HP's) business outlook has taken a turn for the grim, as shares of the former enterprise computing industry powerhouse plunged to a nine-year low on October 3.
The bad news came as HP chief executive Meg Whitman warned of an unexpectedly steep earnings slide for the company in 2013, "with revenue set to fall in every business division except software." Further, according to the report, HP gave "a particularly gloomy outlook" for its enterprise services business for corporations. Revenue from the division is projected to climb only 11 to 13 percent in fiscal 2013 "and be barely profitable, with operating margins of zero to 3 percent."
This stands in stark contrast to IBM, which raised its full-year earnings outlook, said Reuters. As reported by Poormina Gupta, "Wall Street had hoped for quicker signs of progress on Whitman's turnaround plan, which centers on transforming the former industry powerhouse into an enterprise computing corporation that can take on IBM and Dell Inc."
Full Story:HP's outlook disappoints, shares hit nine-year low (uk.reuters.com)