CEO Meg Whitman announced company’s turnaround is on track, prompting stock price to increase by almost nine percent.
Time reported on HP CEO Meg Whitman’s announcement that the company remains on-track for a recovery, despite telling investors in August that the OEM may not reach its growth targets for 2014, explaining that she expects revenue to “stabilise” next year and to accelerate in 2015, with expectations that by 2016, HP will be an “industry-leading company”.
The positive forecast resulted in Wall Street investors increasing HP’s stock price by “nearly nine percent”, with Patrick Moorhead, an analyst at Moor Insights & Strategy commenting: “Most of the comments were about growth opportunities rather than fixing holes in the ship […] investors like that.”
Whitman said in a statement: “While there is a lot more work to be done, I am confident about the progress we are making […] we’re producing tangible results, strengthening our balance sheet and delivering innovative products across all our key segments. We are implementing the changes needed to support our multi-year turnaround journey, reaffirm HP’s leadership position, and create enduring value for customers as well as for our shareholders.”
Whitman became CEO of HP in September 2011, with the company losing around half of its value since 2010 and undergoing restructuring that will see 29,000 lay-offs by the end of next year.