After Hewlett-Packard registered a profit in the latest quarter, the shares of the technology bellwether increased on Wednesday thereby effectively overturning the loss experienced a year ago. For the profits recorded in the fourth quarter, HP has to thank the cost cuts from the ongoing restructuring of its business.
Results ‘Better than Feared’
Peter Misek, Jefferies analyst commented that the 4Q results from HP were ‘better than feared’ and added that some of the large, one-off PC and server deals boosted this quarter’s revenue for the company. HP’s services and printing revenues too were better this time than expected, continued Misek.
In the recent years, HP which was at one time a technology giant, has been facing the heat from mobile computing and related companies such as Apple and Samsung whose smartphones came to be more preferred by customers than the older-generation desktops and laptops.
HP CEO Meg Whitman is trying to reverse things in the company, but given the tough competition from tablets and smartphones, the reversal will be a long-term endeavor.