What's Next For Hewlett-Packard?

Despite in-line earnings, shares of Hewlett-Packard HPQ dove eight percent after the company released the results of its third quarter Wednesday.

EPS came in at $0.86 with revenue at $27.2 billion. These are year-over-year declines of 14 and seven percent, despite a thirty percent boost in share price.

Hewlett-Packard came up against a weak market for its consumer PCs and enterprise divisions, only showing revenue growth for software (one percent).

Analysts expect the technology giant to continue seeing weak PC demand. According to the Mac Observer, tablet sales are expected to surpass laptops this year, with tablet sales overrunning all PC sales by 2015. Although Hewlett-Packard hardly trailed the launch of Apple’s iPad, it has struggled to keep up.

The tech giant’s newest tablet, the Slate 7, is aimed for the lower end market. With prices slashed to $139, investors are skeptical that Hewlett-Packard has been able to reach sales near its competitors. Hewlett-Packard has been very secretive with how many units of its tablet computers they sell, crowding the market with speculation.

Related: Apple's Latest Patent Is A Game Changer For iPad

CEO Meg Whitman commented that the “industry is undergoing profound change and you need to rapidly respond with fresh ideas and bold execution.” On top of trying to seize tablet market share, Hewlett-Packard looks to move into the cloud space.

Thankfully for the bulls, there is optimism for the company’s enterprise divisions. Many analysts expect technology spending to rise, and 2013 corporate growth has been astonishing. However, second quarter earnings were lackluster.

Hewlett-Packard must also combat slowing global demand. Economic data from some of the world’s fastest growing markets (especially China) indicate weakness, and half of Europe is still in the midst of a meltdown.

The upcoming quarter is vital for the company as it will bust through the back to school season and prepare for Christmas spending. Shares of Hewlett-Packard are down 8.5 percent in the premarket to $23.29.