WT Business Beat

By Nick Wakeman

Blog archive
Nick Wakeman

Signs of an HP comeback

The news is looking brighter for Hewlett-Packard, at least on Wall Street.

The company’s stock hit a closing low of $11.71 in November. Yesterday, it closed at $21.32. As I write this, it is up to $21.69.

CNBC also is reporting that there has been an uptick of calls or option buys. The business network says there have been about 5,000 calls for April 23, which are betting that HP’s stock will top $23 by that date.

Looking through their announcements, it doesn’t look like any one event has sparked the comeback.

It is touting cloud successes in government and the commercial market. It had a $220.5 million win with the Homeland Security Department to improve call centers for U.S. Citizenship and Immigration Services.

In its first quarter 2013 results, announced Feb. 21, the company reported that revenue and diluted earnings were down, but cash flow from operations was up 115 percent to $2.6 billion. The company’s debt position improved as well.

Perhaps the best sign, giving investors some confidence, is that the bleeding and the instability at HP seems to have bottomed out. The worst may be over, so with the company on a more stable track, confidence is returning.

On the government side of the business, the next big milestone is the $5 billion Navy Next Generation Enterprise Network contract, which is expected to be awarded in May, though it has been delayed multiple times.

HP is squaring off against Computer Sciences Corp. and Harris Corp. for the lucrative contract.

Winning that contract will mean HP gets to keep the work it has been doing for more than a decade under the Navy-Marine Corps Intranet contract, its biggest piece of government business.

The competition lives up to the overused sports cliché of a "must-win."

Posted by Nick Wakeman on Mar 14, 2013 at 7:24 PM

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
 Merger and Acq
contracts DB


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More