Carly, you've got some 'splaining to do.
The way market pundits are wagging the finger at Hewlett-Packard's
So, what's all the fuss about? For the quarter, total revenues grew to $17.4 billion; however, pro forma profits of $0.23 a share fell three cents shy of earlier projections -- and that's before a laundry list of charges marked that down to just 10 cents.
And don't overlook the fact that $739 million of the company's $858 million operating profits come from HP's flagship printing and imaging business. Yes, the company may be a leaner outfit these days, but it's still no closer in justifying the controversial merger with Compaq.
Quite the contrary, Hewlett-Packard posted operating losses for both its personal and enterprise systems divisions -- the very divisions it was banking on when it spent $19 billion for Compaq. Dell
Going forward, management has some lofty fourth-quarter goals (roughly $0.35 per share, on earnings on at least $18.8 billion in revenue), and maybe the integration story is best left muddy. Heck, if this is the merger that is saving Hewlett-Packard $3.5 billion a year and the Compaq side is still in the red, what does that imply about Compaq's real value?
Either the company was worth well shy of $19 billion or Fiorina hasn't done much of an integration job. The vaunted "HP Way" is a two-way street. Watch out for head-on collisions.
Was this just a quarterly blip or has Fiorina's master plan for HP been derailed? Did Hewlett-Packard do the right thing in buying Compaq? With strength in its services, is the company now a more fitting rival of IBM than Dell? All this and more -- in theHewlett-Packard discussion board . Only on Fool.com.