Shares of Hewlett-Packard Company (HPQ) jumped 10 percent on Friday after CEO Meg Whitman told investors that the company has no plans to split up. Speculation that HP would sell some of its businesses has been swirling since last month.
Hewlett-Packard Company (NYSE:HPQ) shares are up 10 percent, after its CEO, Meg Whitman, reiterated the company’s plan to stick together. There’s been speculation since last month that the company received offers for some of its divisions, including Autonomy Corp, the 2011 acquisition which has been nothing but a nightmare for HP, and EDS, another company HP acquired some years ago.
Whitman made the comments on the company’s first quarter earnings conference call. She said they don’t have any plans to break up the company and that she believes the company is stronger if it remains whole.
Whitman gave herself a little more time to turn the struggling computer company around. On the earnings call, she said she needs five years to get Hewlett-Packard back where it should be.
The Financial Times reports that an anonymous source said Hewlett-Packard Company (NYSE:HPQ)’s board is considering breaking up the company if Whitman’s plans to pick the company back up do not work. However, the source also said the board hasn’t officially set into motion any plans to study the possibility.
Whitman did not raise the company’s projections for the current quarter or the rest of the year because she said this year will likely still be difficult. HP’s last earnings report came out better than expected, so thus far, Whitman’s plan seems to be working, although it is still too early to tell if the plan will have lasting effects.
Shares of Hewlett-Packard Company (NYSE:HPQ) were leading the Dow Jones Industrial Average in performance this morning.