The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
When Hewlett Packard announces its Q1 figures the markets will be expecting to see softer earnings-per-share and sales figures, but, more importantly, improving pre-tax profits up to $2.097 billion for the quarter.
The chief executive officer, Meg Whitman, has done a good job improving the firm’s figures, by reducing debt, raising revenue growth and increasing cash flows. With 3D printing expected to grow by 20% on an annual basis for the next couple of years, this would appear to be a market ready-made for HP. The company already has a client base of 2D users, so this appears to be an area of expansion that needs to be explored further. With all new products, there is a much healthier profit-margin to be had on this new technology.
The share price has done well in the last 14 months, but, in order to maintain this trajectory, the firm will need to bring something fresh to the table. The last 16 month period has seen the share price rise by more than 75% and continue to diverge away from the 200-day moving average. The relative strength index would indicate that the stock is not over-bought just yet, but those looking to go long should be cautious, as the company will need to provide information in order to warrant a continuation of this move.