HP CEO fails to impress Wall Street

April 12, 2012

Meg Whitman, CEO at HP, fails to impress Wall Street so far, as profits decline by 44 percent.

Online news site Financial Review reports that analysts have “yet to see real improvement” at HP after Whitman’s appointment as CEO of the company last autumn, and that “many are concerned by Whitman’s assertion that it could take years”.

The article goes on to state that HP’s stock has already fallen 10 percent this year, with a 44 percent decline in profit and seven percent drop in revenue reported by the OEM in February. Richard J. Kugele, a tech analyst at Needham & Co. commented “the company hasn’t really articulated much of a strategy yet’, while Shaw Wu, an analyst at Sterne Agee added “people aren’t really sure if she’s the one. She may be, but I think people want to see results more near-term”.

Whitman is HP’s fourth CEO in little over a year, succeeding Leo Apotheker in September 2011. She was previously CEO of EBay, which she turned “from a start-up with 30 employees into an $US8 billion household name with 15,000 workers.” While some hoped her high-profile could increase HP’s investors and customers, others were critical of the company for “not choosing someone with a hardware background.” On opinions of Whitman so far, Wu added “If we had to grade how she’s doing so far, I’d say it’s mixed”.

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