HP's Big Data Meets Oil and Gas
Hewlett-Packard Co. (NYSE: HPQ) announced last month its new Information Management and Analytics (IM&A) solutions to leverage big data. IM&A solutions will rapidly gain increased value from Big Data assets to drive new revenue opportunities, improve efficiency, reduce risk and lower costs for HP’s clients. Electricity is a trillion dollar industry. Hewlett-Packard has bounced up 56 percent after its setback in 2012. HP’s stock has ranged in price between $21.79-$22.31. Hewlett-Packard has a market cap of $43.0 billion. Shares are up 53.8% year to date. Currently there are 2 analysts that rate Hewlett-Packard a buy, 6 analysts rate it a sell, and 15 rate it a hold.
HP has a forward price-earnings ratio of 6.3. The median is 9.4 for the technology sector. Shares have fallen 4 percent, while the S&P index has risen 11.5 percent. HP’s release of better-than-expected earnings last February and CEO Meg Whitman’s corporate governance credibility among investors had a positive impact on return. The company recently announced Ralph V. Whitworth to be the new Chairman of Hewlett-Packard, replacing outgoing Chairman Ray Lane.
Key Stock Data
Dividend Yield 2.40%
P/E Ratio N/A
Market Cap $42.71 Billion
Shares Outstanding 1.94 Billion
Public Float 1.95 Billion
IM&A solutions integrate common and disparate data sets to deliver the right information at the appropriate time to the correct decision-maker. These capabilities help companies act on large volumes of data, transforming decision-making from reactive to proactive and optimizing all phases of exploration, development, and production. IM&A solutions can benefit oil and gas firms by: reducing time to first oil, increasing the productivity of assets across their lifecycles, applying advanced business intelligence and embedded analytics, ensuring the right information is available to the workforce at the right time and improving planning and forecasting results.
The new HP Big Data Discovery Experience provides a scalable discovery environment where clients can explore different technologies derived from big data. "A Big Data solution is a significant investment of time and money for any organization, regardless of industry," said Markus Ruff, vice president, Information Management and Analytics.
New global exploration discoveries, deepwater opportunities and new technologies are also important today. U.S. production could be at its highest levels since 1992. Economic factors pertain to enabling energy companies to prepare for growth. Investing in their businesses and building human capital are growth opportunities.
International Business Machines Corp.(NYSE: IBM) shares are at an all-time high, valuing the world’s largest provider of computer services at $236.3 billion. IBM gained 0.7 percent to $212.06 today in New York, the highest level on record. Shares have climbed 11 percent this year. IBM last reached a record closing high of $211 on Oct. 16.
IBM aims to differentiate competitively through analytics. Oil and gas companies can use big data information strategically to reduce time to first oil, reduce operating costs and improve all areas of the oil and gas lifecycle. The company will face increasing pressure to extract new insights from an explosion of available data.
Intel Corporation (NASDAQ: INTC) market cap is of $105 billion. The price-to-earnings ratio is a reasonable 9.88 and the dividend yield of 4.24% is about 45% of projected earnings. This year revenue is expected to be up 1.40% and up again next year by 4.50%. Earnings are estimated to be down 8.90% this year due to heavy R&D expenses but up again by 8.20% next year, possibly continuing to improve for the next five years at an annual rate of 12.33%.
Intel last month launched with Supermicro, Big Data solutions with Intel Distribution for Apache Hadoop Software. The latest Hadoop-optimized system designs significantly reduce overall power consumption to help protect the environment and save customers money on their energy bills. Intel will have to rival competition in performance.
For investors, HP's flawed balance sheet will make it tougher for HP to invest in other new avenues of growth. While current IM&A offerings can deliver strong benefits, HP is working with clients to expand on the results and potential. New Technology will impact the industry. Hewlett-Packard is on a five-year plan to transform business. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and feeble growth in its earnings per share.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.