H-P Wins Deals, Shows Better Visibility - Analyst Blog


Computing giant Hewlett-Packard Co. ( HPQ ) or H-P won two deals last week. Financial details of the deals were kept confidential.

National Stock Exchange Inc. ('NSX') opted for H-P's 3Par StoreServ Storage solution to optimize storage maintenance costs and boost staff productivity. New Jersey-based NSX is an electronic stock exchange. It was founded in Mar 1985 as Cincinnati Stock Exchange.

NSX was facing challenges with its legacy storage infrastructure, which was pushing up storage maintenance costs and delaying the data processing job. H-P's storage platform helped NFX significantly cut down the time required for report generation (due to fast data processing) and ensured higher staff productivity. The solution will also help the company to reduce the risk related to downtime and increase NFX's business continuity.

H-P's 3Par StoreServ Storage solution along with the ProLiant server infrastructure helped NFX achieve its target efficiency

In another development, H-P announced that a renowned recruitment, HR and payroll software provider, Bond International Software Group will be using a technology from Autonomy, a software unit, which was acquired in Aug 2011. London-based Bond International has been dealing in staffing, HR and payroll software since the past 40 years. Its flagship "Bond Adapt" is a database independent, multi-lingual staffing solutions for recruitment companies.

Per the contract, H-P will provide its Autonomy Intelligent Data Operating Layer (IDOL) server to enhance its Bond Adapt platform. With IDOL, the Bond Adapt will be able to scoop out the most relevant candidates for a particular post, by processing the resumes within the database quickly. This will save time for recruiters and help them to find the right job for the right candidate.

Deal wins in different industrial sectors do not come as a surprise. But winning deals in the storage, server and software areas is surely significant. While there may not be a remarkable increase in near-term revenues, it could somewhat offset the challenges in the PC business.

H-P's second quarter earnings per share were better than the Zacks Consensus Estimate, but revenues continued to lag year over year.

Though continuing PC market slump will remain a headwind for H-P's top line, a better cost control effort and new product launches in the non-PC area bode well for the company.

H-P's closing price on May 31, 2013 was $24.42, representing a decent 1-year return of about 15.95% and year-to-date return of about 62.58%.

Currently, H-P has a Zacks Rank #3 (Hold). Investors can look at other companies, such as, SanDisk Corp. ( SNDK ) carrying a Zacks Rank #1 (Strong Buy), and Hutchinson Technology Inc. ( HTCH ) and Western Digital Corp. ( WDC ) carrying a Zacks Rank #2 (Buy).

HEWLETT PACKARD (HPQ): Free Stock Analysis Report

HUTCHINSON TECH (HTCH): Free Stock Analysis Report

SANDISK CORP (SNDK): Free Stock Analysis Report

WESTERN DIGITAL (WDC): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: HPQ , HTCH , SNDK , WDC



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