Hewlett Packard Company’s revenue fell less than Wall Street expected in the first quarter but it raised its outlook for fiscal 2014 earnings and the computing giant, grew sales at its two largest businesses, once again signaling a better year ahead. Amidst a multi-year turnaround effort with the intention to revive growth, the Silicon Valley Company is focusing in reducing its reliance on personal computers, moving towards computing equipment as well as networking gears for enterprises.
Recently the company broke its losing in PC focused personal system group with revenue gain of 4%. Meg Whitman, Chief executive officer informed analysts that the company saw corporations and agencies beginning to replace old computers in the quarter while Microsoft’s decision to shortly end support for its Windows XP operating system has also prompted PC upgrades.
Revenue to Stabilize by 2014
Meg Whitman who had taken the helm of HP more than a year ago states that she expects revenue to stabilize by 2014 with some areas of growth for the company. Recently, Whitman stuck to that outlook and informed Reuters that she was upbeat on HP’s European business as the developed section of that region stabilized and said she saw strength in emerging markets like Mexico and India. Moreover, she added saying that HP’s business in China remained largely flat, much better than competitors had fared.
Shares of HP gained a Penny
For the first quarter, HP reported revenue of $28.2 billion, slightly down from $28.4 billion a year earlier with beating expectations for about $27.2 billion. HP had battled IBM together with now private Dell and China’s Lenovo in coping to win business from enterprises migrating to remote computing services or to the cloud.
According to Whitman, `Lenovo’s imminent purchase of IBM’s low end server division could present an opportunity for HP to try and win over market share, especially in the near term, provided that customer tended to avoid uncertainty about a supplier’s product roadmap. HP shares gained a penny to $30.20 after hours from a close of $30.19 on the New Your Stock Exchange and according to Whitman, HP seems to be in a stronger position presently than they had been earlier.