Mar 11, 2013
Last year, was the year of the write down at Hewlett-Packard (HPQ). New CEO Meg Whitman finally began cleaning up the messes of her predecessors and took an $8.8 billion write down on Autonomy and another $10.8 billion related to the 2008 acquisition of EDS and the stock retreated back to 2002 levels, the year when HP acquired Compaq for $25 billion ushering in the days of cheap laptops and board room squabbles. But to start 2013 HP finally delivered news that wasn’t outright awful and for that the market responded with a massive short-covering rally.
Its latest quarterly results beat analysts’ estimates and it raised its FY-2013 outlook somewhat. After destroying more than $30 billion in ill-advised M&A deals over the past decade, HP finally showed up for work. I hate to be mean about this but, frankly, the situation is embarrassing for one of the truly innovative companies of all time.