This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

HP's Chief Firing Officer Meg Whitman Irks Investors: StockTwits

Stocks in this article: HPQ GOOGL MSFT AMZN RAX

NEW YORK (TheStreet) -- Investors are fed up with HP's Chief Firing Officer.

Hewlett Packard  (HPQ) announced earnings Thursday evening that met Wall Street expectations. But it got there by slashing jobs -- not growing revenue. And that had investors doubting CEO Meg Whitman's statements that the tech giant's "turnaround remains on track" and that she can lead the company back to growth.

$HPQ No turnaround story. Where's the increase in Rev? All Meg can do to maintain share price is cut more jobs. ? Honest Jonno (@HonestJonno) May. 22 at 09:28 PM

$HPQ Each conference call starts with the headline "we are cutting more jobs". Need a refresh of the management ? Honest Jonno (@HonestJonno) May. 22 at 09:32 PM

Management revealed Friday that HP would cut more jobs than initially planned. The company plans to shed between 11,000 and 16,000 more jobs than the 34,000 positions it initially planned to eliminate as part of its plan to remake HP from a PC and printer company into a data service, cloud server and hardware hybrid.

The additional cuts come after HP's revenues declined from the prior quarter and the same period a year ago. Sales of $27.30 billion missed consensus revenue estimates by $110 million and dropped 1% from the prior three months. Earnings per share, however, met the consensus call for 88 cents.

A majority of investors on StockTwits.com believe Hewlett Packard's future under Whitman is to become a smaller company with a correspondingly smaller market cap. Sentiment on the stock is 69% bearish, according to site analytics.

$HPQ Additional 11k-16k jobs to be cut. You can't make money by firing employees. ? Desi Trader (@desitrader100) May. 22 at 06:11 PM

@Purifoy Sales and net income continue to decline. Innovative products are what HP really needs. ? Desi Trader (@desitrader100) May. 22 at 08:48 PM

The stock traded near flat after-hours, recovering from a sharp drop as the earnings news was mistakenly released before the close.

Bullish full-year EPS guidance of between $3.63 and $3.75 buoyed the stock, as well as Whitman's estimate that the company will save between 2 cents and 3 cents per share in fiscal 2014 from the additional layoffs, according to a transcript.

$HPQ - A look at the after-hours action. http://stks.co/t0MEc ? Paul (@TradingPlays) May. 22 at 06:29 PM

But is Whitman right?

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs