NEW YORK (TheStreet) -- Hewlett-Packard (HPQ) stock is up nearly 8% on a better-than-expected fourth-quarter earnings report. Analyzing the report and deciphering the turnaround story are TheStreet's Debra Borchardt and Managing Editor James Rogers.
Despite the earnings report containing positive numbers and good results, Rogers wasn't convinced of the turnaround. While revenue beat expectations, it was still below last year's figures, showing a year-over-year decline.
But HP's gain in PC market share has to count for something, right? Not necessarily. While it might be good to gain market share, Rogers suggested the bigger question investors should ask is, at what cost?
As market share improves, margins are likely to compress, which isn't good for HP. The turnaround is moving in the right direction, he stressed, but it is far from complete.
He complimented CEO Meg Whitman on the work she has completed so far and added she has vastly improved the balance sheet.
So although the stock is higher and approaching 52-week highs, Rogers concluded the turnaround is a multi-year story, and is still in the beginning chapters.
-- Written by Bret Kenwell in Petoskey, Mich.