It's Painful to Watch Meg Whitman Fail So Miserably at HP
Whitman's lack of vision at HP is nothing short of pathetic. After another lackluster earnings report , there's no sign Meg Whitman can turn HP around within the century, let alone this decade.
In mid-September 2012, I chided Whitman for saying since everybody else has a smartphone, HP will probably do one as well .
Then, in early October 2012, David Faber, Jim Cramer and Melissa Lee absolutely schooled a hapless Meg Whitman , who dodged legitimate questions such as Why is HP putting so many eggs in the printing basket, given the shift to mobile environments and the cloud ?
Around the time of that interview, Cramer referred to what's happening at HP as "jaw dropping."
In mid-November 2012, CNBC gave Whitman another chance, but this time one-on-one with Faber. Again, Faber pressed her on printing and Whitman provided Blackberry
... we've got some very interesting products coming up in the consumer space.
During that period, TheStreet's Chris Ciaccia published the aptly-titled HPQ is LOL .
It's all fun and games until the CEO basically tells investors all we're really doing is playing traffic cop with the balance sheet. We've got nothing in terms of innovation and don't expect year-over-year revenue growth.
What's even funnier and gamier is that since mid-September 2012, HPQ stock, not including Wednesday's after hours crash, is up roughly 40%. The situation at HP is every bit like it is at Best Buy
If you can trade the aggressive moves these stocks make, more power to you. On a HPQ- and especially BBY-like run, it's not all that difficult. But don't get greedy. Because these stock price pops do not reflect what's actually going on at the company. And, at HP, that's obviously nothing.
Dig the lackadaisical rhetoric, shallow spin and flat-out disappointment from Whitman and her counterparts on HP's Wednesday afternoon conference call:
In our personal systems business, we are seeing continued PC market contraction as HP revenue declined 11% over the prior year.
However a weak PC market ...
As you know, I stated in May that I believe that company level revenue growth was still possible in fiscal 2014, particularly given the challenges I just highlighted in enterprise group and personal systems as well as the fact that 2013 revenue from key accounts in enterprise services is running off more slowly than anticipated. We now expect that total company year-over-year revenue growth in fiscal 2014 is unlikely.
The PC market has not stabilized as much as I had anticipated it would. That stabilization is yet to occur.