19.70 0.00 (0.00%)
After hours: 7:58PM EST
|Bid||19.64 x 3200|
|Ask||19.66 x 4000|
|Day's range||19.54 - 19.90|
|52-week range||15.93 - 24.17|
|Beta (3Y monthly)||1.47|
|PE ratio (TTM)||7.26|
|Earnings date||26 Nov 2019|
|Forward dividend & yield||0.70 (3.52%)|
|1y target est||19.95|
HP (HPQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg Opinion) -- After HP Inc. rebuffed Xerox Holdings Corp.’s attempted $34 billion takeover attempt, don’t be surprised if the printer company’s next step is to say, “You don’t buy us, we buy you.” But don’t expect any offer to be generous.A counteroffer from its bigger rival may have been Xerox’s plan all along. The two companies have been involved in tentative talks about a combination at various times over the past few years. Xerox’s ploy, which would have involved taking on considerable debt, looks to have at least succeeded in bringing HP back to the negotiating table.The problem for Xerox Chief Executive Officer John Visentin is that HP holds most of the cards. Xerox is significantly smaller: Before takeover talks resurfaced, HP’s $28 billion market capitalization made it more than three times as large. The debt to fund the deal would have been secured against HP’s own free cash flow.That means HP could just as readily use its debt capacity to buy back its own shares. Repurchasing 20% of the stock at $23 a share would cost less than $7 billion, represent a premium to the offer from Xerox and still leave HP’s net debt well below twice its estimated 2020 earnings before interest, taxes, depreciation and amortization. Were Xerox the acquirer, debt at the combined entity would rise above four times Ebitda.In the letter rejecting the offer on Sunday, HP CEO Enrique Lores and Chairman Chip Bergh alluded to the possibility, saying they could deploy their “strong balance sheet for increased repurchases.” In essence, Xerox’s competing bidder for HP is HP itself. The Palo Alto, California-based company could generate just as much short-term value for its existing shareholders as the Xerox bid.The challenge for Xerox is to convince HP that a counteroffer makes sense. To do that, it will need to demonstrate either that a combination would generate healthier returns than HP would with a share buyback or that the companies will be stronger in the long term if they team up. Ideally, it does both.Xerox contends it has identified $2 billion in savings, most of which would likely come from firing a lot of people in administrative and R&D jobs. An offer from HP at a 30% premium to Xerox’s current share price would cost it close to $11 billion. Based on analysts’ earnings estimates, that might generate returns after three years of just more than 13%. That’s more than Xerox’s cost of capital but considerably less short-term value than HP could generate through a buyback. Even at a premium to its average price over the past year, returns would still be around only 15%.That means Xerox would have to make serious concessions on price, including accepting a bid that leans more heavily on stock than cash, with the expectation that shareholders benefit from the uplift. Investors might prefer that anyway: the two companies share nine of their top 20 shareholders in common.HP’s low debt is the reason Xerox could think of a takeover to begin with. It also gives the company strong reasons to walk away.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Today at Autodesk University, HP Inc. announced HP ZCentral, a solution powering the next-gen of computing with the world’s first single sourced remote workstation solution. ZCentral centralizes high-end computer power in a single location, liberating power-users who work on graphics-intensive applications, and enabling remote, mobile and fluid workstyles.
Investing.com -- Saudi Arabia bows to the inevitable and scales down the Aramco IPO - but it could still be the world's biggest ever. Hong Kong's stock market defies the most violent clashes yet between police and students. HP rejects Xerox's bid, and sterling surges after weekend opinion polls show Boris Johnson's Conservatives on track to win a majority in parliament and break the Brexit deadlock. Here's what you need to know in financial markets on Monday, 18th November.
(Bloomberg) -- HP Inc.’s board unanimously rejected Xerox Holdings Corp.’s unsolicited takeover proposal, saying the $22-a-share offer is too low and citing concerns about the smaller rival’s prospects in the printing industry.HP is “open to exploring” a merger but there are “fundamental questions that need to be addressed,” Chief Executive Officer Enrique Lores and Chairman Chip Bergh wrote in a letter to Xerox CEO John Visentin. They cited Xerox’s revenue decline since June 2018, “which raises significant questions for us regarding the trajectory of your business and future prospects.”HP pressed for access to Xerox’s books as a step toward any potential combination, which would unite iconic brands and reshape the printing industry. Norwalk, Connecticut-based Xerox is one of the biggest sellers of photocopiers, while Palo Alto, California-based HP is one of the world’s largest printer makers. A representative for Xerox wasn’t immediately available for comment.“With substantive engagement from Xerox management and access to diligence information on Xerox, we believe that we can quickly evaluate the merits of a potential transaction,” Lores and Bergh wrote. “We remain ready to engage with you to better understand your business and any value to be created from a combination,” they added.HP officials believe they can move quickly on due diligence because the two companies have had on-and-off-again conversations over the years, and even asked for such a review toward a potential combination back in September, according to people familiar with the situation who asked not to be identified. HP officials are open to any form of transaction that would create the most value for shareholders and may consider buying Xerox, the people said.HP’s statement included a Nov. 5 letter from Xerox outlining the offer of $17 a share in cash and 0.137 Xerox shares for each HP share, for a total transaction value of $33.5 billion. Xerox’s letter said the offer remained open until Nov. 13.Since news of the talks broke on Nov. 5, HP’s shares have risen 9.7% to $20.18, giving it a market capitalization of $29.9 billion. Xerox has risen about 7.1% to $38.94, for a market cap of $8.42 billion.A combination has had the support of investor Carl Icahn, who filings last week show had raised his stake in HP to 4.2% of shares outstanding in the third quarter. Icahn, in an interview last week with the Wall Street Journal, said he sees HP as undervalued and that a combination would benefit both companies through cost savings.A representative for Icahn wasn’t immediately available for comment Sunday.(Updates with shares in seventh paragraph. An earlier version was corrected to remove a reference to when HP’s board made decision)To contact the reporters on this story: Jim Silver in New York at email@example.com;Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sebastian Tong at email@example.com, Matthew G. Miller, Kevin MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
HP Inc. (HPQ) today announced that its Board of Directors has unanimously rejected the unsolicited proposal from Xerox Holdings Corporation to acquire the Company. In reaching this determination, the Board also considered the highly conditional and uncertain nature of the proposal, including the potential impact of outsized debt levels on the combined company’s stock.
Carl Icahn, the veteran activist investor, owns stakes in both companies, and has described a tie-up as “a no-brainer”. Launched on November 5, Xerox’s unsolicited cash-and-shares offer represented a premium of about 20 per cent to HP’s closing share price.
PALO ALTO, Calif., Nov. 13, 2019 -- The HP Inc. board of directors has declared a cash dividend of $0.1762 per share on the company’s common stock. The dividend, the first.
Significant Business Model, Ecosystem, Applications, and Materials Advancements; Continued Customer Momentum With More Than 18 Million Multi Jet Fusion Parts Produced in Last.
(Bloomberg) -- Xerox Holdings Corp. is prepared to offer HP Inc. almost a month for the companies to examine each other’s books as it seeks to win over the computer and printer maker for a takeover offer, according to people familiar with the matter.Xerox, one of the biggest sellers of photocopiers, is willing to give HP four weeks of mutual due diligence so the companies can weigh the merits of the $22-a-share cash-and-stock deal as well as the envisioned cost savings of such a combination, said the people, who asked not to be identified because discussions are private.Whether the time or scope of the access to one another will be sufficient to for HP to agree to enter discussions with its smaller rival is unclear. People familiar with the matter said, however, that HP had offered Xerox a non-disclosure agreement in September, typically a precondition of due diligence, which had been refused.The people added that while both HP and Xerox have acknowledged privately there is some rationale for combining, there are potentially intractable disagreements about which should be the buyer and which the seller, which management team should run the pro forma company, and which has a healthier underlying business.Xerox, which had a market value of about $8 billion at the close of trading on Tuesday, is pushing ahead with a plan to acquire and manage bigger rival HP, which was worth about $27.3 billion before news broke on the potential deal. The offer of $22 a share is a premium of about 20% to HP’s close Tuesday.A representative for HP declined to comment. Caroline Gransee-Linsey, a spokeswoman for Xerox, didn’t immediately return a call and email outside of normal business hours.HP confirmed last Wednesday that Xerox made a takeover offer a day earlier, a potential union of two iconic brands that would reshape the printing industry. The pair have had conversations about a potential combination “from time to time,” Palo Alto, California-based company HP said in that statement. “We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye toward what is in the best interest of all our shareholders.”Citigroup Inc. has agreed to provide Xerox financing to swallow HP, a person familiar with the matter said. The company would likely need to take on at least $20 billion of debt to close the deal.HP, one of the world’s largest printer makers, and Norwalk, Connecticut-based Xerox are struggling as waning interest in office and consumer printing blunts their most profitable businesses. HP also has contended with a stagnant PC market.Xerox Deal for HP Would Just Be a Way to Print Money: Alex WebbBoth have responded with significant cost-cutting measures. HP’s new Chief Executive Officer Enrique Lores announced another restructuring that could remove as much as 16% of the workforce by the end of fiscal 2022, amid falling sales in printer ink. Xerox said it plans to cut $640 million in expenses this year. The copy-machine company expects a combined Xerox-HP entity could save at least $2 billion in expenses, according to the Wall Street Journal.Since splitting from server maker Hewlett Packard Enterprise Co. in 2015, HP has avoided big mergers and acquisitions. HP did, however, spend $1.05 billion for Samsung Electronics Co.’s printer unit to bolster its presence in the $55 billion photocopier market, where Xerox has excelled.\--With assistance from Caleb Melby.To contact the reporter on this story: Ed Hammond in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Aaron Kirchfeld at email@example.com, Kevin Miller, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- HP Inc.’s board is still deliberating over a $33 billion takeover proposal from Xerox Holdings Corp., people familiar with the matter said, adding uncertainty to a potential blockbuster deal that would reshape the printing industry.HP’s board is trying to create the most value for shareholders and isn’t yet convinced a sale to Xerox is the right move, said the people, who asked not to be identified discussing HP’s private deliberations. The board doesn’t feel any pressure to respond quickly, the people added. Xerox wants to receive an answer within a week to the $22 per share cash-and-stock offer made Tuesday, according to people familiar with Xerox’s thinking.Palo Alto, California-based HP confirmed in a statement Wednesday that it had received an offer, but didn’t comment on its level of support for a combination. The second-biggest maker of personal computers pledged to do “what is in the best interest of all our shareholders.”HP, one of the world’s largest printer makers, and Xerox, one of the biggest sellers of photocopiers, are struggling as waning interest in office and consumer printing has blunted both companies’ most profitable businesses. HP also has contended with a stagnant PC market.Both hardware makers have responded to the changing markets by cutting costs. HP’s new Chief Executive Officer Enrique Lores announced another restructuring that could remove as much as 16% of the workforce by the end of fiscal 2022, amid falling sales in its lucrative printer ink business. Xerox said it plans to cut $640 million in expenses this year. The copy-machine company, based in Norwalk, Connecticut, expects a combined Xerox-HP entity could save at least $2 billion in expenses, the people said.Xerox began building the business case for an HP acquisition months ago, said the people, who asked not to be identified discussing the strategy. The company sees a combined entity having enough market share in printers and photocopiers to rival Canon Inc., which has a significant presence in both markets, they said. Ricoh Co., another Japanese company, would be another major rival.What Bloomberg Intelligence Says“A merger with HP would create a behemoth printing and PC maker with nearly $70 billion in revenue. Though top-line growth challenges may remain in the intermediate term, synergies could help boost annual free cash toward $5 billion and enable future deleveraging.”\--Robert Schiffman, technology analystWith the unwinding this week of its half-century long joint venture with Fujifilm Holdings Corp., Xerox has lost a major distribution channel in Asia. HP has a large presence in Asia and can give Xerox a sales organization across the region, the people said. Xerox expect its dedicated sales staff for small and mid-sized businesses in the U.S. can help boost HP product revenue. A combined company would be able to sell or offer a subscription, for example, to Xerox photocopiers, HP printers and personal computers to those customers, the people said.A Xerox spokeswoman didn’t immediately respond to a request for comment. An HP spokeswoman declined to comment.The proposal made on Tuesday would give $17 a share to HP holders, as well as 0.137 Xerox shares for each HP share, for a combined estimated value of $22 a share, the people said. The Wall Street Journal reported the specifics of the offer earlier.(Updates with HP’s decline to comment in the eighth paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
HP Inc. (HPQ) and ePac, the all-HP Indigo digital flexible packaging leader, today announced a significant expansion with HP Indigo. A new incremental order of 24 HP Indigo 20000 presses is the largest packaging deal to date for HP.
(Bloomberg) -- HP Inc. confirmed that Xerox Holdings Corp. has made a takeover offer, a potential deal between two iconic names in technology that would reshape the printing industry.“We have had conversations with Xerox Holdings Corporation from time to time about a potential business combination,” the Palo Alto, California-based company said Wednesday in a statement. “We received a proposal transmitted yesterday. We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye toward what is in the best interest of all our shareholders.”Citigroup Inc. has agreed to provide Xerox financing to swallow HP, a person familiar with the matter said. The company would likely need to take on at least $20 billion of debt to close the deal, which was reported earlier by the Wall Street Journal. HP’s market capitalization was about $27.3 billion at the close of trading on Tuesday, while Xerox’s was $8 billion, before news broke of the potential deal. Xerox had extended an offer at $22 a share, the Financial Times reported, a premium of about 20% to HP’s close Tuesday, before news of a potential takeover emerged.HP hasn’t decided whether the Xerox offer is the right deal, according to a person familiar with HP’s thinking. The PC maker doesn’t agree with Xerox on the potential synergies and has concerns about the debt needed for a deal, said the person, who asked not to be identified speaking publicly about internal talks. Even if HP decides a combination is worthwhile, it isn’t convinced Xerox has the relevant experience for a complex merger and doesn’t think Xerox should be the buyer, the person said.HP, one of the world’s largest printer makers, and Xerox, one of the biggest sellers of photocopiers, are struggling as waning interest in office and consumer printing has blunted both companies’ most profitable businesses. HP also has contended with a stagnant PC market.Xerox Deal for HP Would Just Be a Way to Print Money: Alex WebbBoth hardware makers have responded to the changing markets with significant cost-cutting measures. HP’s new Chief Executive Officer Enrique Lores announced another restructuring that could remove as much as 16% of the workforce by the end of fiscal 2022, amid falling sales in its lucrative printer ink business. Xerox said it plans to cut $640 million in expenses this year. The copy-machine company, based in Norwalk, Connecticut, expects a combined Xerox-HP entity could save at least $2 billion in expenses, according to the Journal.“Financing a $30 billion HP transaction with mostly debt may be challenging for Xerox, but not an insurmountable obstacle,” Robert Schiffman, an analyst at Bloomberg Intelligence, wrote Wednesday in a note.In its statement, HP expressed confidence in its plan for the future.“We have great confidence in our multi-year strategy and our ability to position the company for continued success in an evolving industry, particularly given the multiple levers available to drive value creation,” HP said.Since splitting from server maker Hewlett Packard Enterprise Co. in 2015, HP has avoided big mergers and acquisitions. The company has focused on financial discipline, minimizing debt and returning capital to shareholders in an operating template set by former Hewlett-Packard Co. CEO Meg Whitman. HP did, however, spend $1.05 billion for Samsung Electronics Co.’s printer unit to bolster its presence in the $55 billion photocopier market, where Xerox has excelled.Separately, Xerox announced Tuesday that it would get $2.3 billion from longtime partner Fujifilm Holdings Corp. for its stake in their joint venture, Fuji Xerox. The U.S. company had indicated since last year that it intended to end its ties with the Japanese company after a complex merger transaction fell apart.(Updates with reported bidding price from the third paragraph)To contact the reporters on this story: Nico Grant in San Francisco at firstname.lastname@example.org;Ed Hammond in New York at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, ;Liana Baker at email@example.com, Andrew Pollack, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
HP’s invention of the personal laser printer four decades ago was the culmination of one of the most successful corporate “skunk works” projects ever undertaken. The profits from laser printers supported HP for many years, and now look likely to outlast it. for HP Inc this week, if successful, will finally bring the curtain down on a company that long defined Silicon Valley’s unique approach to innovation — though HP’s printers will go on throwing off cash, this time to help support the huge debt load Xerox plans to take on to buy its much bigger rival.
(Bloomberg) -- Lenovo Group Ltd.’s quarterly earnings surged 20% after the Chinese personal computer giant safeguarded its market share against American rivals HP Inc. and Dell Technologies Inc.Net income rose 20% to $202.2 million in the three months ended September. That compares with the $201 million average of analysts’ estimates compiled by Bloomberg. Revenue increased 1% to $13.52 billion, versus the $13.7 billion average of 10 analysts’ estimates.Lenovo expects the global demand to “remain volatile amid a complex macro environment,” the company said in a statement, adding that it’s “well positioned to manage complex and dynamic market conditions.”Lenovo was responsible for nearly a quarter of worldwide PC shipments last quarter, thanks to a strong push in Europe, the Middle East and Japan, according to IDC, an industry research firm. The 17.3 million units shipped helped the Chinese company claim top spot in the market, beating long-time competitors HP and Dell.But Chief Executive Officer Yang Yuanqing has warned about uncertainty from U.S.-China trade tensions, which could disrupt its global business as well as a supply chain that stretches from North Carolina to Wuhan, China.Also on Yang’s checklist are plans to revive the datacenter business, which is suffering from sluggish demand because clients tend to cut back on hardware expenses amid economic uncertainty. The smartphone unit could also use a face-lift, as a business that’s shown few signs of growth outside of North and Latin America.To contact Bloomberg News staff for this story: Gao Yuan in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Against this backdrop, we have had conversations with Xerox Holdings Corporation (XRX) from time to time about a potential business combination. This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP and its consolidated subsidiaries may differ materially from those expressed or implied by such forward-looking statements and assumptions.
(Bloomberg Opinion) -- In what universe can a tiring, $8.8 billion maker of photocopiers even think about acquiring a $27 billion, moderately sexier maker of printers and PCs?This one, apparently. Xerox Holdings Corp. is contemplating a cash-and-stock bid for HP Inc., the Wall Street Journal reported on Tuesday. While the size of the discrepancy in market values makes a deal seem hard to digest, the capital requirements don’t exceed the realms of possibility. Xerox wouldn’t be buying an exciting new growth business. It would get HP’s cash flow and the ability to reduce costs, probably through significant job cuts.Xerox’s efforts to sell itself appear to have failed. But HP has endured a difficult year, with its stock declining 25% since an October 2018 peak. Its enterprise value is at the lowest level relative to estimated 12-month earnings since 2016. It’s vulnerable to an approach.Its situation has been exacerbated by operational turbulence. Chief Executive Officer Dion Weisler stepped down at the start of the month for family reasons, announcing a new turnaround plan soon before he left, which successor Enrique Lores inherited. Take into account HP’s relatively low debt and continued ability to generate strong free cash flow, and a bid from Xerox appears entirely feasible.The smaller company would, in a sense, be buying a license to print more money through HP’s cash flows. Remaining independent is only going to become more difficult, with global printer shipments set to decline by 2% annually through 2023, according to research firm Gartner. Teaming up would reduce costs and competition in the segments where they overlap; HP is generally stronger in the market for smaller printers, while Xerox holds the lead in larger ones. That could boost profitability even as revenue stagnates.Were Xerox to offer a 30% premium to HP’s average share price over the past 12 months, then a bid in the region of $35 billion might be realistic. Yes, even with a stock component, the required debt pile would be a lot for Xerox to swallow — funding needs could hit $20 billion, according to Bloomberg Intelligence analyst Robert Schiffman. But the merged entity would need to realize savings representing less than 5% of the companies’ combined $9.3 billion annual operating costs to cover the cost of capital, based on 2022 earnings projections.The Journal reported that Xerox, which is based in Norwalk, Connecticut, had received an informal funding commitment for the deal from a bank, which Bloomberg News identified as Citigroup, citing an unidentified person with knowledge of the matter. Xerox sees room for about $2 billion of annual cost savings from combining the two companies, the person said. If a bid materializes, credit Xerox CEO John Visentin for thinking big. Since he was appointed last year with the backing of activist investor Carl Icahn, Xerox’s second-biggest shareholder, the stock has outperformed that of HP. News of the possible bid for HP came just hours after Xerox agreed to sell a stake in a lucrative 57-year-old joint venture with Japan’s Fujifilm Holdings Corp. for $2.3 billion.Would it make sense for HP to do the inverse deal and acquire Xerox? Probably not entirely. It most likely already had the opportunity to do so and passed. But for Xerox, it could prove a canny piece of financial engineering.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Nov.18 -- HP Inc.’s board unanimously rejected Xerox Holdings Corp.’s unsolicited takeover proposal, saying the $22-a-share offer is too low. But HP did say it's still open to discussing a merger. Bloomberg's Liana Baker reports on "Bloomberg Markets."