Home > Boards > US Listed > Computers - Hardware > Hewlett-Packard Compaq (HPQ)

HP Inc. down 13.2% after sales miss, guidance

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
lecorb Member Profile
Followed By 24
Posts 1,084
Boards Moderated 0
Alias Born 04/04/12
160x600 placeholder
HP Inc. and Girl Rising Mark International Day of the Girl with Partnership to Empower 10 Million Students and Teachers GlobeNewswire Inc. - 10/11/2019 10:47:12 AM
Software Upgrades Boost PC Sector -- WSJ Dow Jones News - 10/11/2019 3:02:00 AM
PC Shipments Rose on Software Upgrades, Looming Tariffs Dow Jones News - 10/10/2019 7:00:00 PM
HP Expands Healthcare Edition Portfolio to Address Global Industry Challenges GlobeNewswire Inc. - 10/7/2019 6:00:00 AM
Charles Schwab, Lennar, Johnson & Johnson: Stocks That Defined the Week Dow Jones News - 10/4/2019 6:51:00 PM
HP Stock Closes Down 10% a Day After Laying Out Restructuring Plans Dow Jones News - 10/4/2019 4:46:00 PM
HP Inc. Down Nearly 10%, on Pace for Lowest Close Since February 2017 -- Data Talk Dow Jones News - 10/4/2019 12:41:00 PM
HP Shares Slide After Company Plans Job Cuts, New Sales Model Dow Jones News - 10/4/2019 10:43:00 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 10/4/2019 6:01:31 AM
HP's New Chief to Cut Up to 9,000 Jobs -- WSJ Dow Jones News - 10/4/2019 3:02:00 AM
HP to Cut Up to 9,000 Jobs in New CEO's Restructuring Plan Dow Jones News - 10/3/2019 7:28:00 PM
HP Inc. Announces Fiscal 2020 Financial Outlook & Restructuring Plan GlobeNewswire Inc. - 10/3/2019 7:07:52 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 9/30/2019 4:49:28 PM
HP Spectre x360 13: The New Standard for Premium GlobeNewswire Inc. - 9/30/2019 9:00:00 AM
HP Partners with World Wildlife Fund on Forest Protection, Restoration and Management GlobeNewswire Inc. - 9/23/2019 9:00:00 AM
Correction to HP Inc. Headlines on Aug. 22 Dow Jones News - 9/20/2019 1:28:00 PM
Introducing HP Elite Dragonfly GlobeNewswire Inc. - 9/18/2019 2:00:00 AM
HP Expands Sprocket Portfolio GlobeNewswire Inc. - 9/5/2019 9:00:00 AM
Stocks: Computer Makers Power Up After Dell's Strong Earnings Report -- WSJ Dow Jones News - 8/31/2019 3:02:00 AM
PC Makers Power Up After Dell Earnings -- Update Dow Jones News - 8/30/2019 5:17:00 PM
PC Makers Power Up After Dell Earnings Dow Jones News - 8/30/2019 1:23:00 PM
Quarterly Report (10-q) Edgar (US Regulatory) - 8/29/2019 4:08:36 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 8/27/2019 4:31:13 PM
HP Inc. on Pace for New 52-Week Low After 3Q Earnings Report and CEO Change -- Data Talk Dow Jones News - 8/23/2019 10:57:00 AM
HP CEO Quits, Citing Family Health Issue HP Names Lores as Its New CEO -- WSJ Dow Jones News - 8/23/2019 3:02:00 AM
lecorb   Wednesday, 11/25/15 02:39:32 PM
Re: Shadow Stevens post# 706
Post # of 733 
HP Inc. down 13.2% after sales miss, guidance cut; Needham downgrades

Nov 25 2015, 13:31 ET | About: HP Inc. (HPQ) | By: Eric Jhonsa, SA News Editor

What used to be HP's PC/printing unit (NYSE:HPQ) has plunged below $13 after missing FQ4 sales estimates on the back of 14% Y/Y sales drops for both its PC and printing segments, and cutting its FY16 EPS guidance below consensus.

With printing op. income (-18% in FQ4 to $862M) well above PC segment op. income (-17% to $294M), printing headwinds are getting a lot of attention. On the earnings call (transcript), CEO Dion Weisler stated weak market demand and price pressure both weighed on printing. "We do not expect the landscape to improve in the near future and we will constantly assess how the market evolves."

He added forex is affecting pricing, and that lower printer price points are "attracting buyers that might have different usage patterns then we originally targeted." Printing supplies revenue stabilization now isn't expected until the end of 2017. The growth of online/mobile document and photo sharing has been a major printing headwind for some time.

Needham's David Rold has downgraded to Hold just three weeks after upgrading to Buy on account of a low valuation and 3%-4% dividend yield. "[A]s some of the valuation argument has played out, we believe further upside will require real improvement in the underlying business. The sharp turn of the Printing market (and delay in improvement that results) in just 2-3 months since last speaking with the Street warrants caution..."

Likewise, Goldman's Simona Jankowski (Neutral) is worried about soft supplies demand (sales -10% in FQ4). "While the company intends to reduce its cost base to partially offset market headwinds, we would need to see evidence of supplies stabilization before becoming meaningfully more positive on HP Inc.’s trajectory."

Deutsche's Sherri Scribner (Buy) remains bullish. "While we do not expect HPQ to be immune to [market] trends, we believe the company can outgrow its peers and end markets, driven by market share gains and a focus on profitable growth opportunities. A recovery in supplies is a key driver of free cash flow strength longer term, and while we were disappointed by the push out of this recovery to later in FY-17, we believe [management] has the right tools in place to stabilize this business."

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist