Hewlett-Packard Earnings And The Apple Problem

Hewlett-Packard Company (NYSE:HPQ) announced its earnings yesterday for the second quarter of 2012 beating analysts estimates. The company earned 98 cents per share on revenue of $30.69 billion. The firm's shares soared on the announcement of a massive restructuring deal at the company that will see it shed 27,000 employees and save $3-$3.5 billion every year.

Analysts were expecting the company to earn just 91 cents per share on revenue of $29.9 billion. In the same period last year the company earned $1.05 per share. The overshoot combined with the cost cutting deal has driven the firm's shares up over 5.5% in...