Tue, Nov. 22, 4:27 PM
- Results – revenue $12.5B (+1.9% Y/Y, $620M above estimates), EPS $0.36 (in-line), net cash provided by operating activities $0.7B, repurchases and dividends $214M
- Segment revenues – Personal Systems $8.018B (+4% Y/Y), Printing $4.558B (-8% Y/Y)
- Q1 projections – EPS $0.35-$0.38 (consensus $0.38)
- FY 2017 projections – EPS $1.55-$1.65 (consensus $1.60)
- HP (NYSE:HPQ) president and CEO Dion Weisler: "We delivered on our full year financial commitments and executed well on our strategy to protect our core, drive growth and invest in our future all while taking cost out of the business. As we've proved quarter over quarter, we are confident in our abilities to execute and deliver, while making business decisions focused on the long-term success for the company."
- Prior quarters overview
- Conference call
- Press release
Tue, Nov. 22, 4:09 PM
Mon, Nov. 21, 5:35 PM
Fri, Nov. 11, 4:12 PM
- Analyst Katy Huberty notes 37% of Apple's (NASDAQ:AAPL) market capitalization, or $216B, is held overseas and should a prospective 10% repatriation allowance occur, the company could save $54B in tax expense if it chooses to bring that sum back onshore.
- Should the theorized scenario play out, shareholder returns, debt reduction, substantial M&A and a combination of all of the above are cited to be on the table. Further notes, "It would likely also remove an overhang on the stock that has been in place for many years."
- Additionally identifies other potential beneficiaries on the hypothesis including NetApp (NASDAQ:NTAP), with 43% of its market capitalization offshore, Hewlett Packard Enterprise (NYSE:HPE), at 26%, HP (NYSE:HPQ), at 21%, Western Digital (NYSE:WDC), at 17%, and IBM (NYSE:IBM), at 6%. Does, however, also consider levels of international revenue exposure and the impact other forthcoming policies could have on these names, graphing out some related percentages in a model displayed here.
Wed, Nov. 9, 3:32 PM
Mon, Oct. 31, 3:57 PM
- Brocade Communications (NASDAQ:BRCD) is up 22.3% and hanging right at 52-week high range after news that it's in talks to sell itself and getting close to the end of that process.
- A deal could be announced this week, Bloomberg reports, and one of the interested parties is reportedly Broadcom (AVGO +0.7%), which could be interested in supplementing its switch-chip business with Brocade's networking gear. Broadcom CEO Hock Tan has said he's interested in acquisitions.
- Such a deal might allow for better competition against much bigger rival Cisco Systems (CSCO +0.4%). "A purchase by Broadcom (Avago) would be a strategic move by Broadcom to vertically integrate in an IP switching and routing market that has increasingly moved to merchant silicon," notes Stifel analyst Aaron Rakers.
- He's maintained a Hold rating and $10 price target (the boost today has put Brocade at $10.63). He doesn't know any inside information about activity around Brocade this week but notes that for years, talk has persisted that Brocade might sell itself to suitors like H-P (NYSE:HPQ), Oracle (NASDAQ:ORCL) or IBM (NYSE:IBM).
- With current net debt (about $440M) and at $11/share, Brocade would come at about a $4.9B enterprise value, 7.3 times EBITDA, he says.
Thu, Oct. 13, 4:58 PM
- Projects EPS at $1.55-$1.65 (consensus $1.61) and free cash flow at $2.3B-$2.6B.
- Quarterly dividend raised 7%, additional $3B share repurchase authorized.
- Anticipates returning 50%-75% of free cash flow through dividends and buy backs.
- HP (NYSE:HPQ) president and CEO Dion Weisler: "Although our markets remain very challenged, we are committed to innovating in the core and continue to see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitization of graphics and manufacturing through our leading 3D printing solutions."
- In a separate 8-K filing, HP discloses a 3K-4K employee restructuring expected to be implemented starting in FY 2017 through FY 2019. Estimates a $200M-$300M range for gross annual run rate savings beginning in FY 2020, though $350M-$500M in overall charges resulting from the plan.
- Conference call
- Press release
Wed, Sep. 28, 7:16 PM
- HP (HPQ +1%) has apologized to customers affected by a software update that caused some printers to stop working with third-party ink cartridges, and promised a fix.
- The update caused the printers to stop working even if they had worked with outside ink supplies in the past. HP says the move was designed to protect customers from "unauthorized" cartridges.
- "Although only a small number of customers have been affected, one customer who has a poor experience is one too many," said a statement by Chief Operating Officer Jon Flaxman that promised another update to come that reverses the change.
- HP's ink cartridges contain security chips that can be read and recognized by its printers. Printer ink is one of the company's most profitable products.
Mon, Sep. 12, 10:25 AM
- Microsoft (MSFT) registers a new major customer for its CRM offering, marking a win over competitors Salesforce (CRM +0.4%) and Oracle (ORCL +0.6%).
- HP (HPQ +1.4%) will utilize Dynamics throughout its marketing and sales and services operations. HP already uses Microsoft's Azure, Office 365 and other Microsoft Cloud offerings.
- HP COO, Jon Flaxman: "We have chosen Microsoft Dynamics as our CRM solution for our direct selling, partners and services. This brings us a cloud-based solution that delivers a more effective and efficient collaboration engine across our business."
- Though the opportunity for the cloud enterprise space lies within all sizes of businesses, winning a large and notable client like HP demonstrates Microsoft continues to make headway within the highly competitive industry.
Mon, Sep. 12, 5:11 AM
- HP (NYSE:HPQ) is getting a lot bigger. The personal computer and printing giant is buying Samsung's (OTC:SSNLF) printing business for $1.05B, in a move that will give it 6,000 new employees, thousands of new technology patents and a bigger presence in Asia.
- The acquisition is expected to add to HP's earnings in its full year after closing.
- Samsung will also buy $100M-$300M worth of HP shares on the open market once the deal is through.
Fri, Sep. 9, 8:48 AM
- Looking to focus on its core businesses, Samsung Electronics (OTC:SSNLF) is considering selling its printer business to HP (NYSE:HPQ) in a deal worth around $1.8B, the Seoul Economic Daily reports.
- The paper, citing an unnamed senior Samsung source, said the Korean firm will likely announce a decision on the potential sale by next week.
- HPQ -0.8% premarket
Thu, Aug. 25, 9:16 AM
Wed, Aug. 24, 5:38 PM
Wed, Aug. 24, 4:25 PM
- HP (NYSE:HPQ) reported $11.9B in Q3 revenue, higher than analyst predictions, though down from the prior year.
- Personal Systems net revenue (4.4% operating margin) remains unchanged Y/Y, Commercial net revenue declined 3% and Consumer net revenue improved by 8%. Total units increased 4% (Notebooks unit +12%, Desktops unit -6%).
- Printing net revenue (20.4% operating margin) declined 14% Y/Y, total hardware units declined 10% (Commercial units -2%, Consumer units -14%) and Supplies revenue decreased 18%.
- Projects Q4 diluted net EPS of $0.34-$0.37 and FY 2016 diluted net EPS of $1.59-$1.62.
- HP president and CEO, Dion Weisler: "Although the markets remain challenged, we have the innovation and executional rigor needed to continue to take profitable share and invest in the right opportunities to drive long-term success for the company."
- Conference call
- Press release
Wed, Aug. 24, 4:06 PM
Tue, Aug. 23, 5:35 PM