I thought you might find this article on Seeking Alpha interesting:
Hewlett-Packard: Positive Signs In Q1 2014 Results
by I Know First Research
In September 2013, Hewlett-Packard (HPQ) was delisted from the Dow Jones Industrial Average components list, as investors perceived it as an excellent shorting opportunity. With considerable write offs, an extensive decline in the PC segment, lack of management, ineffective strategies, and outdated product lines, it was reasonable to have a lack of confidence in Meg Whitman's five-year recovery plan. read more »
After falling 3.5% Y/Y in Q3, external disk storage system sales rose 2.4% in Q4, says IDC. The growth came even though sales of the servers that interact with these systems fell an estimated 4.4%.Total disk storage sales, which include storage subsystems found within servers, rose 1.3% in Q4 after dropping 5.6% in Q3. IDC attributes the turnaround to "traditional year-end budget flushes, improved economic sentiment, and a strong desire to address long-standing storage infrastructure inefficiencies."Market leader EMC, which posted strong Q4 numbers to go with light guidance, saw its external disk share rise 220 bps Y/Y to 32.9%, and its total disk share rise 200 bps to 25.8%. The gains largely came at the expense of restructuring IBM, whose shares respectively fell 190 bps and 200 bps to 13% and 14%.H-P's (HPQ) external disk share rose 30 bps to 9.6%, and its total disk share 40 bps to 16.3%. NetApp (NTAP), which delivered nearly in-line revenue and soft guidance last month, saw its external share fall 10 bps to 11.5%, and its total share stay flat at 9%. Private Dell's total share fell 140 bps to 9.9%.
Hewlett-Packard will continue to focus on innovation, cash flow, restructuring plans and continue to expand the new style of IT they are implementing. Even though some areas of operation need some improvement, HP rebuilt and restructured itself in a way that it can reaffirm itself as a leader. Over the last two years of reconstruction, we have seen them adopt the right strategies exhibiting that Hewlett-Packard is well on its way to achieving their five-year plan. While some segments still need more focus and still show some shortcomings, only one quarter of results should not dissuade an investor from considering HPQ. If their financial performance confirms anything, it is that HP is capable of managing some inadequacies in the enterprise services group and still can achieve overall positive results.