Back to top

Analyst Blog

Hewlett-Packard Co. (HPQ - Analyst Report) recently announced its success story with Russia’s federal mobile broadband services provider, Yota, which has reportedly improved business performance with the tech giant’s software services. Financial details of the deal, signed some time back, were not divulged.

In 2006, Yota started providing broadband services through WiMax, which is an IP-based technology suitable for providing data rates of 30-40 megabit per second. Now, the broadband provider has shifted to a much faster 4G LTE (fourth generation Long Term Evolution) technology, which is capable of transferring data at a speed of 100 megabyte per second. This technology calls for real time processing and analysis of sizable data, which has been taken good care of by H-P’s Vertica database analytical tool.

Leveraging H-P’s Vertica, Yota found it easy to launch its latest 4G LTE connection across 10 Russian cities. Yota also intends to spread its network connection across other major regions.

In the current competitive environment, customers need more dynamic architectures that can easily manage bulk data and information streams.  Vertica’s platform helps customers to analyze massive amounts of data simply, quickly and reliably, resulting in “just-in-time” business intelligence. H-P acquired database technology maker Vertica Systems in March 2011.

In October 2011, H-P acquired Autonomy Corporation at a staggering price, with a focus on its unstructured data analytics engine. The acquisitions increased H-P’s exposure in the data analytics market, leading to enhanced business volumes.

The data analytics business forms part of H-P’s Software segment. This was the only segment that recorded a year-over-year growth (18.4%) during the last quarter. This shows that H-P’s focus on the high-margin software market has started paying off.

However, slowing overall profitability, lackluster PC demand, uncertainty over new product ramps, competitive pressure from Dell Inc. and overall macro uncertainty keep us on the sidelines.

Currently, H-P has a Zacks #3 Rank, implying a short-term Hold rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%