HP Predicts 2014 Bounce

Written by Oonagh Reidy     10/10/2013 | 13:02 | Category: HOME OFFICE

'New Style of IT' to deliver HP's comeback?

HP Predicts 2014 BounceHP CEO Meg Whitman predicts "pockets of growth" and revenues to "stabilize" in 2014.

After a few very rocky quarters, HP's CEO told Wall Street analysts to expect better times ahead for the former PC king, thanks to its "New Style of IT" the combination of hardware, software, scale and innovation. 

"Fiscal 2014 will be a pivotal year for us," she said at the annual investor briefing, yesterday in San Jose. HP is set to accelerate investment in the 'New Style of IT', which includes cloud, security, big data and mobility - all high-growth areas. 

The past year has been a "fix and rebuild" year, the ex-eBay boss said in a statement, noting its multi-year turnaround plans remains 'broadly' on track.

Yesterday, HP provided investors an updated fiscal 2014 outlook, indicating revenue decline in fiscal 2014 will moderate from losses endured in 2013. 

The company referred to "pockets of growth helping to offset continuing challenges in the macro environment and weak public sector spending."

However, it anticipates operating profit to be flat in fiscal 2014, due to a focus on cost savings and operational efficiency. 

The company estimates non-GAAP diluted EPS for fiscal 2014 to be in the range of $3.55 to $3.75.

HP estimates GAAP diluted EPS to be in the range of $2.85 to $3.05 for fiscal 2014. 

HP is expecting to return at least 50% of free cash flow to shareholders through dividends and share repurchases in fiscal 2014

Shares soared 9% closing at $22.60 after HP's Ceo suggested stable time ahead.