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HP Inc. (HPQ) to Ship A3 Multifunction Printers Globally
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HP Inc. (HPQ - Free Report) recently announced that its all-new A3 multifunction printers (MFPs) will now be shipped globally to more than 80 countries covering all key markets.
These products are designed to disrupt the traditional $55 billion A3 copier category. HP's highly scalable and cost-optimized printers will meet the increasing demand of customers' printing needs.
The traditional copiers increase the complexities of repairing and maintaining for HP’s partners and customers. The all-new A3 MFPs – with latest printing technology – enhance overall customer and partner experience with advanced security features. The printers also provide brighter colors, shorter production cycles and higher production throughput.
According to Tuan Tran, general manager and global head, Office Printing Solutions, HP Inc. "We set out to offer our partners a robust portfolio of A3 MFPs with disruptive technologies and a range of finishing options to meet current and future printing needs."
We believe that the successful deployment of the new A3 MFPs printers will boost revenue growth for the company, going forward.
HP's printing revenues were down 3% year over year to $4.483 billion in the first quarter of fiscal 2017. We feel HP can revive the business and have a bigger share in the inkjet printer market with these new offerings.
Interestingly, HP signed a deal to acquire Samsung Electronics’ printer business in 2016 for $1.05 billion. The acquisition is a strategic fit for HP as it will expand the company’s printing business, with the addition of 6,500 plus printing patents owned by Samsung.
We believe that HP’s massive restructuring moves will sharpen its focus on core businesses, and enable it to expand its share in the PC and Printing market. Moreover, per the latest reports of two independent research firms – Gartner Inc. and International Data Corporation – the downtrend in PC shipments became quite modest in fourth-quarter 2016, compared with the previous quarters. Therefore, an improving trend in PC shipments will benefit the business prospects of companies like HP Inc.
Share Price
The stock increased approximately 47.5% in the last one year, outperforming the Zacks categorized Computer-Mini Computers industry’s gain of 33%.
Bottom Line
HP’s efforts toward reviving its printing business have been commendable. Its strategy of focusing on product innovation and enhancing 3D printing capabilities will help in stabilizing falling revenues at its printer division.
However, macroeconomic challenges and tepid IT spending remain near-term concerns. Competition from the likes of International Business Machines (IBM - Free Report) and Apple (AAPL - Free Report) add to its woes.
Micron has a long-term expected EPS growth rate of 10%.
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HP Inc. (HPQ) to Ship A3 Multifunction Printers Globally
HP Inc. (HPQ - Free Report) recently announced that its all-new A3 multifunction printers (MFPs) will now be shipped globally to more than 80 countries covering all key markets.
These products are designed to disrupt the traditional $55 billion A3 copier category. HP's highly scalable and cost-optimized printers will meet the increasing demand of customers' printing needs.
The traditional copiers increase the complexities of repairing and maintaining for HP’s partners and customers. The all-new A3 MFPs – with latest printing technology – enhance overall customer and partner experience with advanced security features. The printers also provide brighter colors, shorter production cycles and higher production throughput.
According to Tuan Tran, general manager and global head, Office Printing Solutions, HP Inc. "We set out to offer our partners a robust portfolio of A3 MFPs with disruptive technologies and a range of finishing options to meet current and future printing needs."
We believe that the successful deployment of the new A3 MFPs printers will boost revenue growth for the company, going forward.
HP's printing revenues were down 3% year over year to $4.483 billion in the first quarter of fiscal 2017. We feel HP can revive the business and have a bigger share in the inkjet printer market with these new offerings.
Interestingly, HP signed a deal to acquire Samsung Electronics’ printer business in 2016 for $1.05 billion. The acquisition is a strategic fit for HP as it will expand the company’s printing business, with the addition of 6,500 plus printing patents owned by Samsung.
We believe that HP’s massive restructuring moves will sharpen its focus on core businesses, and enable it to expand its share in the PC and Printing market. Moreover, per the latest reports of two independent research firms – Gartner Inc. and International Data Corporation – the downtrend in PC shipments became quite modest in fourth-quarter 2016, compared with the previous quarters. Therefore, an improving trend in PC shipments will benefit the business prospects of companies like HP Inc.
Share Price
The stock increased approximately 47.5% in the last one year, outperforming the Zacks categorized Computer-Mini Computers industry’s gain of 33%.
Bottom Line
HP’s efforts toward reviving its printing business have been commendable. Its strategy of focusing on product innovation and enhancing 3D printing capabilities will help in stabilizing falling revenues at its printer division.
However, macroeconomic challenges and tepid IT spending remain near-term concerns. Competition from the likes of International Business Machines (IBM - Free Report) and Apple (AAPL - Free Report) add to its woes.
HP currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is Micron Technology, Inc. (MU - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Micron has a long-term expected EPS growth rate of 10%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>