Revenues fall by 14% YoY
Hewlett-Packard’s (HPQ) Printing business group reported revenue of $4.4 billion in fiscal 3Q16, which fell by 14% YoY (year-over-year). It fell by 10% YoY on a constant currency basis. The operating profit of this segment was $903 million of 20.4% of total revenues.
Supplies constituted 64% of revenues in the Printing segment, whereas Commercial Hardware and Consumer Hardware accounted for 29% and 7% of revenue, respectively.
Revenue from HPQ’s Supplies sub-segment fell by 18% YoY—13% YoY on a constant currency basis—in fiscal 3Q16. Total Hardware units fell by 10% YoY, Commercial Hardware units fell by 2%, and Consumer Hardware units fell by 14% YoY in fiscal 3Q16. Hewlett-Packard expects the trajectory of the revenue from its Supplies sub-segment to stabilize by 2017.
The CEO of Hewlett-Packard (HPQ), Dion Weisler, stated, “The market remained very challenging and our progress was a direct result of discipline and operational rigor. We did what we said by both reducing discounts, as evidenced by year-over-year improvements in constant currency ASPs and improving our cost structure to enable the more positive NPV unit growth sequentially.”
Hewlett-Packard dominates the hardcopy peripherals market
According to the International Data Corporation, Hewlett-Packard continues to be a market leader in the worldwide hardcopy peripherals market, with a share of ~36% at the end of 1Q16. Its share, however, fell from 40% in 1Q15.
Canon (CAJ) is in a distant second place in this market, with a share of ~19.5%. Seiko Epson (SEKEY), Brother (BRTHY), and Korea’s (EWY) Samsung (SSNLF) are other small players in this market with shares of 17.3%, 7.7%, and 4.4%, respectively.
Hewlett-Packard (HPQ) believes that the 3D printing space will be disruptive—and profitable—in the next few years.
After being listed on the NASDAQ (QQQ) on March 29, Lyft (LYFT) stock has traded on a negative note so far.
Coca-Cola (KO) impressed investors with better-than-expected revenue and earnings for the first quarter.
Microsoft (MSFT) announced this month that it had acquired a San Diego startup called Express Logic for an undisclosed amount.
Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.
On April 23 before the market opened, legacy motorcycle maker Harley-Davidson (HOG) reported its first-quarter earnings results.
Williams Companies (WMB) is scheduled to release its first-quarter earnings on May 1 after the market closes.