Sales, share price sink for HP Inc – but it's relative glee for HPE It was an inauspicious start to life as a standalone entity for HP Inc - the breakaway computer and printing business - as it forecast lower than expected profits, based on depressed market demand. The organisation, which undocked from the HP mothership at the start of this month, as did Hewlett Packard Enterprise (HPE), …
It always amazes me that a prediction can be fore 50 cents, actual profit can be 40 cents and somehow a company is on the rocks. Profit is profit. If it is declining, sure, do things to improve business, but it isn't like they predicted 44 cents and came in in negative numbers...
And as for printing being the bottom line generator. That went out the window when they changed their model to basically free printers and low capacity ink jet cartridges. When a printer costs $100 and a full kit of replacement cartridges cost more and last for just 6 months, it doesn't make sense to replace them. Its more economical to just go buy a new printer.
Me, I'll stick to my laser color by HP. More up front but cheaper in the long run for me. Maybe not so much for H P... :)
You are right. As I have said on here a few times to the 'HP is doomed' naysayers, HP consistently makes > $1 billion a quarter net profit and is hardly on its uppers.
The problem is that for Wall Street merely making profit isn't enough - companies have to grow to attract investors and HP isn't growing at the moment...
Well you know what they say : if a company is stagnating, it is on the decline because it is leaving market opportunities to its competitors.
Funny that, the black/white outlook on company performance. It's almost as if there is no possibility of the market not allowing for expansion at a given point.
I think HPE has difficulties going forward, they have let go too many good and experienced resources in the UK especially. Where they have fixed priced deals they will not be putting in the resources or investments in the right areas, regardless of the contracts. The resources have been let go, and the best shore resources are not experienced, properly trained and available. I have no knowledge of exact numbers but know from personal experience that handovers were limited. I fully expect profits increased this year where resources are non existent, lower grades or cheaper bestshore are being used, The key figure will be how many contractors as a percentage are required. My expectation is that next year there will be a higher percentage of clients moving their business elsewhere as the hogwash around why teams are not delivering will be more exposed. I can see some large firms suing hpe, unless of course politically it is not correct for both parties. I have no knowledge of any firms that are doing so, but can see it happening for lack of delivery of contract or where services have fallen over and customers are impacted.
The company is going down a governance hell hole where travel is banned, and even small decisions to spend money need to be escalated to senior levels. There are contradictory offerings occurring and money being wasted all over the place with Managers having blinkers on, focusing on bestshore and staff reductions and not the business. There is a total climate of fear in the uk with the lowest morale I have ever seen in any company I have worked. Notice of decisions are being issued with no apparent investment, real training is very limited and in own time and over all the business looks like it is being set up to be sold either to a Microsoft type business or Ebay (based on Megs former job). Whilst I have no knowledge of what the big picture is I am glad I am out. Perhaps I will be offered a job as a contractor.
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