NEW YORK (TheStreet) -- Investors are fed up with HP's Chief Firing Officer.
Hewlett Packard (HPQ - Get Report) 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.
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 PMThe 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 PMBut is Whitman right?
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