Dallas, Texas 10/23/2013 (Financialstrend) – All eyes are firmly set on Hewlett-Packard Company (NYSE:HPQ) 3Q results announcement after IBM disappointed the market with its 3q results last week. A quick recap is in order to give readers a context to why Hewlett-Packard results have assumed importance for the tech sector. IBM 3Q revenue came in $1.07 billion and missed analyst expectations by a wide margin. This was construed as direct result of drop in sales in the Asia Pacific region. The results represent a 15% dip in revenue from the region in comparison to previous fiscal. In the same week HP and IBM’s peer Teradata had set up expectations about its 3Q results by announcing that it foresees a marked decline in its 3Q revenue due to fall in demand from Asia for new hardware. On the back of the bad 3Q results announcement by IBM, the stock of Hewlett was down by 0.8%.
In what seems like forbidding portent of things to come on October 10, long time HP tracker and analyst Jim Chanos has indicated that he foresees the marquee hardware maker struggle in most of its product verticals, be it its printer division, personal computers sales or its cash cow the enterprise sales market. The analyst has expressed doubts of HP meeting up to its own expectations of improving its margins given the all round dip in sales for its products.
Post these dire warnings from analyst and its competitors, it would be interesting to see how Hewlett-Packard Company (NYSE:HPQ) has actually fared so far this fiscal. The $46.3 billion market capitalized hardware maker has seen its net loss balloon up to $3.15 billion over the past 12 months. Its sales in 2Q dipped 8.2% which sent shivers down its long term investors.
Share holders of the stock would be hoping that post the 3Q results the stock will be able to wipe off the 7.29% deficit the stock has experienced over the past 3 months.