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.