Sources familiar with the matter have revealed that Hewlett-Packard Company (NYSE:HPQ) has reassigned at least two of its senior executives today. The company is due to release its earnings report for the third quarter of the year after Wall Street shuts down for the day. The reassignments include the Vice President in charge of company’s enterprise group and its HP Chief Marketing Officer.
Both executives will, according to CNCB sources, be reassigned inside Hewlett-Packard Company (NYSE:HPQ). Investors will be clamoring to get the company’s earnings call later on this afternoon in order to find out what precipitated the change in strategy at the company, and what is to be expected in the future.
Reassignments puzzling investors
The computer maker has decided to resign Dave Donatalli, VP in charge of the enterprise group, and Chief Marketing Officer Marty Homlish today according to sources that spoke to AllThingsD and CNBC. The reshuffle is an additional cause of worry heading into earnings. The enterprise group is often touted as the best source of future growth for Hewlett-Packard Company (NYSE:HPQ).
According to the reports, Dave Donatelli will be reassigned inside the company, but his new job will not be announced until the company releases its earnings report later on today. The report on Homlish was equally unhelpful on his new position within the company.
The enterprise group is the part of the company that Hewlett-Packard Company (NYSE:HPQ) is driving. The PC business is collapsing, and the company has been unable to enter the mobile market in a meaningful way. Those options are increasingly off of the table. HP is looking toward enterprise to save its revenue numbers.
That makes the reassignment of the head of that group interesting. Hewlett-Packard may be about to announce a shift in strategy this afternoon, or it might be an unimportant switch. Either way, it adds to the tension heading into earnings.
Hewlett-Packard Company (NYSE:HPQ) is expected to show earnings of $1 per share for the three months April to June, on revenue of $28.1 billion. On today’s market the firm’s stock is down, indicating that some investors believe the firm will disappoint this afternoon. Since the start of the year HP shares have risen in value by more than 79%.
The coming earnings report is now a more dramatic event—the market will be watching Hewlett-Packard Company (NYSE:HPQ) closely this afternoon.