HP shares, which have risen more than 50% this year, gained 1.28% to reach $21.38 in Wednesday's trading.
The PC maker, of course, is in the throes of a massive multi-year restructuring effort, which was kicked off by Whitman in May 2012. The former eBay (EBAY) chief has already described fiscal 2013 as "a fix and rebuild year," with "recovery and expansion," "acceleration" and "industry-leading competition" characterizing the years 2014 through 2016.Nonetheless, there are plenty of clouds on the horizon. Last week's underwhelming first-quarter numbers from PC rival Dell (DELL) underlined the scale of the task facing Whitman and HP. Dell's End User Computing sales slumped 9% to $8.9 billion as the PC slowdown continues. Also see: HP Bets on Google With the Help of Nvidia Investors heaved a sigh of relief after HP surpassed Wall Street's modest first-quarter expectations in February. This, however, should not be seen as a massive uptick in the company's fortunes, according to Brian White, an analyst at Topeka Capital Markets. "Restructuring cost savings and low market expectations have created the impression that HP is recovering," wrote White, in a note released earlier this week. "However, we continue to believe the path to a sustainable, long-term turnaround will be riddled with challenges and disappointment." Also see: How Dan Loeb's Sony Split Mirrors Yahoo! Rebirth White has a "sell" rating on HP. Analysts surveyed by Thomson Reuters are looking for HP to report revenue of $28.01 billion and earnings of 81 cents a share, down from $30.7 billion and 98 cents a share in the prior year's quarter. Topeka's White expects HP to deliver earnings upside when it reports its second-quarter numbers, albeit in its seventh consecutive quarter of falling profit. "Similar to other IT companies that recently reported either March quarter or April quarter results, we expect HP to discuss a muted IT spending environment with particular weakness in Europe (EMEA at 36% of 1QFY13 sales), combined with continued softness around public spending," he wrote.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV