Whitman, speaking at the Securities Analyst meeting in New York on Wednesday, said 2013 will be a "fix and rebuild year." And the No. 1 PC maker warned of pain for investors, delivering a weaker-than-expected outlook for fiscal 2013 stemming from a limp economy.
The former eBay (EBAY) chief, who took over from the ousted Leo Apotheker, took on a Herculean task when she walked into the company's headquarters in Palo Alto, Calif., just over a year ago.
The new CEO has set about clearing up HP's mess in a methodical fashion, quickly nixing the controversial effort to unload the firm's PC business and implementing a major restructuring plan. She has also made leadership changes.Despite these efforts, though, HP's 5-year hangover could leave investors with a headache of their own, according to analysts. Jayson Noland, an analyst at Robert W. Baird, lowered his HP price target from $22 to $18 on Thursday, maintaining his "neutral" rating on the company. "We continue to believe that HP is experiencing both secular and cyclical challenges and acknowledge that the precise trajectory of the recovery is difficult to predict," he wrote in a note. During her presentation on Wednesday, Whitman broke the company's transformation down into specific years, from "diagnosis and foundation" in fiscal 2012, through to "recovery and expansion," "acceleration" and "industry-leading competition" in years 2014 through 2016. Even if HP manages to meet its internal goals, however, there are myriad external factors that could knock the company off track. From intensifying competition from Apple (AAPL) in the PC market to challenges from Cisco (CSCO) in servers and networking, HP's vast product portfolio necessitates an aggressive war on multiple fronts. There are also economic pressures to consider, such as the weakness in Europe and the consumer market that weighed heavily on HP's 2013 outlook. Additionally, Whitman pointed to slowing growth in China during her presentation during Wednesday's Securities Analyst meeting.
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