HP's CEO needs to convince wary Wall Street

Hewlett-Packard Co must convince Wall Street it can reverse a string of disappointing results, weather a drought in technology spending and deliver growth again when it reports earnings on Thursday.The companys chief executive, Leo Apotheker, who came on board with hopes of reinvigorating a sprawling business empire he blames previous management for stifling, has presided over two quarters when HP was forced to shave 2011 sales forecasts.Some analysts warn HP may have to do so again after a market sell-off and a downgrade of U.S. government debt reinforced uncertainty about the global economy.Investors fled hardware shares after Dell Inc this week slashed its fiscal 2012 revenue outlook, afraid that spending by corporations and government will crumble as economic growth slows. HP fell about 4 percent on Wednesday, while Dell plunged more than 10 percent.In light of growing signs of economic weakness, increased concerns around government debt levels around the world, plummeting consumer confidence levels and the mini-crash over the past few weeks, we expect HP to take a more cautious tone on this Thursdays conference call, Ticonderoga Securities analyst Brian White wrote on Wednesday.We find it hard to believe the companys high European exposure will not be impacted by the current environment, while we expect the companys consumer exposure to be challenged and...the services turnaround could take longer than expected.Several brokerages however kept Buy or Outperform ratings on the stock, which is trading at 6.5 times 2011 earnings versus Dells 8.2 -- one of the lowest among major tech players -- after shedding a quarter of its value in 2011.Wall Street had braced for a tepid year as governments worldwide grapple with ballooning debt, high unemployment in the developed world discourages consumers, and corporations tighten their belts in the face of uncertainty.