Hewlett-Packard HPQ expands its Large Format print portfolio with the launch of HP DesignJet T1600 and T260 and HP DesignJet XL 3600 multifunction printers (MFP). The company also added HP PageWide XL 3900 printer to its production portfolio.
The company further introduced HP DesignJet T100 and T500 to complement smaller workspaces which require faster data and mobile communications.
Reportedly, the app-based and cloud connected multi-function printer portfolio has been designed for the architecture, engineering and design community.
Per management, Hewlett-Packard is leading the transformation in Large Format printers for small to medium-size businesses. With the latest product launches, the workplace printing experience is likely to get as smart and easy as it is at home.
Further, these innovative launches coupled with the company's transition to services are expected to help it reinvent the print segment and deliver long-term growth opportunities.
A Look at HP's Printing Segment
Hewlett-Packard has been focusing on its profit-generating Printing Business for some time now. The segment is driven by growth in hardware revenues, increase in unit share and progress in contractual offering.
In the las t report ed quarter, total hardware unit sales of Commercial Hardware, which consists of Office Printing Solutions, Graphics Solutions and 3D Printing grew 2%, while revenues from the same rose 5%. Both revenues and unit sales of Consumer Hardware, which includes Home Printing Solutions, grew 2% in the prior quarter.
However, disappointing Supplies revenues is an overhang on the Printing business . Supplies revenues declined 3% due to weakness in EMEA where it fell 9%.
Rising macro uncertainties and the price sensitivity among customers are undermining the company's high-margin Printing business. Moreover, change in customer purchasing behavior with more commercial customers buying items online, is an overhang on HP's Supplies share.
On the last earnings call , management further highlighted that all commercial customers are purchasing supplies online and the company has a lower market share in that space as compared to its share of traditional commercial resellers and in-store retailers.
Further, given the high inventory and pricing issues, the company expects sales for the Printing segment to decrease over the rest of the year.
Nonetheless, the company's focus on product innovation & differentiation are likely to trigger demand for its Printing products in the market.
HP Inc. Revenue (TTM)
HP Inc. revenue-ttm | HP Inc. Quote
Zacks Rank and Stocks to Consider
HP currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader Computer and Technology sector are Cadence Design Systems CDNS , Rosetta Stone RST and Verint Systems VRNT , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Cadence, Rosetta and Verint is projected at 12%, 12.5% and 11%, respectively.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HP Inc. (HPQ): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Rosetta Stone (RST): Free Stock Analysis Report Verint Systems Inc. (VRNT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research