Hewlett-Packard is one of the foremost companies in the computer industry. They’re reporting that they had a good quarter because of stronger-than-expected computer and server sales.
Hewlett-Packard reported solid results for its second quarter as strong growth in PC and x86 server sales helped offset an unremarkable quarter for its services business.
HP’s revenue for the quarter ended April 30 was US$30.8 billion, up 13 percent from a year earlier and ahead of the consensus estimate from Wall Street analysts, according to a poll by Thomson Reuters.
Net earnings were $2.2 billion, or $0.91 per share, each up 28 percent from a year earlier. Excluding acquisition fees and other one-time charges, earnings were $1.09 per share, 4 cents ahead of what Wall Street had expected.
The recession may be in full swing, but many experts think reports like this indicate the recession is lessening each month.
Hewlett Packard has announced the purchase of Palm, the smartphone creator that has been struggling as of late. Palm is the make of the Pre and the Pixi, both of which were well-received but failed to keep the company out of trouble.
The deal gives H.P. access to Palm’s homegrown software that can run phones, as well as other types of devices like computer tablets. H.P. has historically worked with partners for such technology — a strategy that has resulted in plummeting smartphone sales and tardiness in introducing mobile products.For Palm, H.P.’s acquisition represents a lifeline for a company that had recently put itself up for sale after consumers failed to respond to its new smartphones.
Analysts were quick to say that H.P.’s deep pockets and clout with retailers and carriers should breathe new life into Palm. Still, they also warned that melding a pair of flagging mobile phone businesses comes with obvious challenges.
This is definitely a risky move for Hewlett Packard, but one that could pay off big. They have been slowly losing their grip on their market share and this could be the move that puts them back in the game.
Carl Icahn is an American financier and corporate takeover specialist who is known for his heavy-handed investing and foresight. However, his most recent move to buy a controlling interest in Lions Gate Entertainment Corp. has been rejected. Apparently he made a bid earlier this year, for only 30% of the company, but this time went after controlling interest.
“The only substantive change is that the Icahn Group is now bidding for full control of the Company without offering a meaningful vision, without demonstrating a relevant track record of industry experience and without paying a control premium,” Lions Gate Co-Chairman and Chief Executive Officer Jon Feltheimer said in a statement.
Them’s fightin’ words, eh? One rarely sees such blunt language in the business world, where money trumps feelings–but it seems Icahn might have offended the Lions Gate Board with his offer.
Every Superbowl we all look forward to the advertisements that are put out. However, the best advertisements every year are the ones made by Bud Light. Last year’s ads, though, were found to be a flop with consumers–who expected the same routine, a funny advertisement. Anheuser-Busch InBev, the maker of Bud Light’s commercials, created
…a spot in which people form a human bridge to help a Bud truck make it into town, and another Bud Light ad that had men talking in electronically distorted voices.
The bridge ad was “classic Bud, a spot that shows the can-do sprit of America,” said Mark DiMassimo, chief of New York ad firm DiGo.
Bud Light can’t be beat for creativity and the spots got good marks. For 2.5 million+, I hope they get the consumer bang for their advertising buck. I find it highly unlikely, though, that a debt-and-stress ridden economy is going to respond well to advertisements just because they are funny or clever.
Although many investors and predictors, like Peter Schiff, have repeatedly claimed that this recession had a possibility of turning into a Great Depression, it seems that they may have gotten ahead of themselves. New reports, which came out today, indicate that the market may be in for a slight rebound–though it certainly won’t come charging back to its former strength in a matter of weeks or even months–indeed it could take years for the market to get back the heights it had hit before this latest crash.
Steady growth in the manufacturing, construction, and housing markets has led analysts to conclude that the market is turning around. These newest sets of economic data certainly seem to mean good things for the American economy and those who rely on it. After the worst recession in seven decades, Americans could use the good news.
The economy, as measured by the gross domestic product, expanded at an annual rate of 2.8 percent in the July-September quarter after four straight quarterly declines. But growth may slow a bit in the current quarter and even more next year as the effects of the government’s stimulus programs begin to wane.