Stocks of Hewlett-Packard Company (NYSE:HPQ) Flew High as the Sales in the PC Segment Spiked Up


The CEO of Hewlett-Packard Company (NYSE:HPQ), Meg Whitman, successfully executed her policies in the company as the sales of PCs -manufactured and assembled by the company- are on a rise. Analysts expect the CEO to implement strategic policies in the services and software segments as well.

The company, on August 21, 2014, reported its financial figures for the third fiscal quarter of the year 2014. The company saw a growth of 1.3 percent in its revenues, with figures reaching $27.6 billion. The profits of the company, excluding some segments, came to around 89 cents per share. Market analysts were expecting the company to report a profit of 89 cents per share with total revenues of $27 billion.

The sales in the PC segment of the company rose by 12 percent; however, the sales in other segments, including software, printers and services, either tumbled down or remained within 2 percent growth rate.

These volatile figures in different segments indicate that the CEO still needs to implement strategic moves in some of the company’s sectors. It is important to note here that the company not only improved its revenue growth in the last two years- since Whitman took charge- but it also cut down on its costs by reducing the work force.

One of the analysts at Edward Jones, Boll Kreher, said that the company has shifted its long term business to software and services sector, and it is ironic to see that the company failed to report growth figures in these two segments. He further said that the company needs to go a long way if it wants to strengthen its future by benefiting from the long term plan. It is important to note here that Edward Jones has given the stock of Hewlett-Packard Company (NYSE:HPQ) a ‘hold’ rating.

During a press call, the CEO of the company said that Hewlett-Packard Company (NYSE:HPQ) has seen quite good numbers in the PC sector and it plans to focus more on that segment, for the company can gain much more in the PC sector in the upcoming years. She further said that even though the company failed to report remarkable numbers in the software and services sector for the third fiscal quarter of the year 2014, it does not mean that the business will remain that way.

In the early trading session on August 21, 2014, the stocks of Hewlett-Packard Company (NYSE:HPQ) jumped up by 5.4 percent and reached to $37; it was the first time that the stocks had gone this high since July, 2011.

Hewlett-Packard Company (NYSE:HPQ), one the last trading day, August 22, 2014, started its shares at a price of $36.85 and closed at a price of $36.84, after hitting the highest figures of $37.07 for the very first time in almost 2 years. The company has a total market capitalization of $68.94 billion with a price to earnings ratio of 13.91. As far as the dividend yield of the company is concerned, the figures are reported to be around 1.74 percent.

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