Hewlett-Packard Company (HPQ)’s Turnaround Story May Be Coming to an End

Consider that the mother of all server companies, International Business Machines Corp. (NYSE:IBM) just announced quarterly earnings this past week and missed on the top and bottom lines. It was the company’s first earnings miss since 2005. The main reason for the miss was weak demand in the IT hardware segment, and analysts think this is a bad sign moving forward for the whole industry, not just for International Business Machines Corp. (NYSE:IBM).

Lastly, the Blackstone Group decided this week to pull its bid to take Hewlett-Packard Company (NYSE:HPQ)’s closest competitor, Dell Inc. (NASDAQ:DELL), private. While the reasons for the about-face haven’t been revealed, and although the decision doesn’t point to any one business unit in particular, it does say a little about the business as a whole.

Hewlett-Packard Company (NYSE:HPQ) needs to be hitting on all cylinders, and with PC sales slumping, that doesn’t seem to be happening now. In fact, there’s evidence suggesting it won’t be happening later, either, as this industry continues to evolve.

The article HP’s Turnaround Story May Be Coming to an End originally appeared on Fool.com and is written by Matt Thalman.

Fool contributor Matt Thalman owns shares of Microsoft. The Motley Fool owns shares of IBM and Microsoft.

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