Clearly, HP CEO Meg Whitman has a lot on her plate. Last year she laid out her turnaround plan for the No. 1 PC maker, which has seen its shares slump 37% over the past 12 months. HP says it's on track to complete its restructuring by the end of fiscal 2014. By 2016, Whitman expects to see the company's revenue growing in line with GDP and operating profit increasing faster than revenue.
HP's research and development (R&D) also came under scrutiny this week, with Moody's noting that it lags rivals such as IBM, Dell, Cisco, EMC, Oracle Lenovo and Lexmark (LXK).
"We expect Hewlett-Packard's revenue growth to continue lagging its broad peer group due to the company's relative underinvestment in R&D," Moody's analyst Richard Lane wrote in a note Thursday. "We estimate that HP invested approximately $1.1 billion less in R&D than a competitor composite during the last year, and $5.4 billion since 2006."
HP shares, which have climbed almost 19% since the start of 2013, dipped 1% to $16.94 in Friday trading.-- Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org.
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