October 07,2019

HP’s Ink Business Used to Print Money. Now It’s Running Dry

HP’s printer and ink business used to gush money. Those days may be over.

The company announced a major restructuring at its 2019 securities analyst meeting on Thursday. HP will reduce its workforce of 55,000 by 7,000 to 9,000—a cut of 13% to 16%. The move is supposed to save $1 billion a year by the end of 2022. To entice investors, HP mentioned a 10% boost in stock dividends and increased share buybacks.

The news sent shares reeling by 9.6% at Friday’s market close. Morgan Stanley, Credit Suisse, and Bank of America all lowered their share price targets by a dollar or more. Loop Capital downgraded it from “buy” to “hold,” which is on top of September downgrades by Sanford C. Bernstein and USB.

Read the full article here.

Back to Articles

09 May 2023

DynamicsCon LIVE Conference Information

martinwolf will be attending the DynamicsCon LIVE conference in Scottsdale May 22-25. Book a confidential one-on-one meeting with Michael Rosholt to learn about market trends, current valuations, and how to prepare for a sale. DynamicsCon attendees are also eligible for a complementary M&A Readiness Scorecard from martinwolf. Contact Michael Rosholt at mrosholt@martinwolf.com to...

22 Feb 2023

How Microsoft Channel Partners Can Command High Valuations

In today’s rapidly changing ecosystem, simple organic growth doesn’t give Microsoft Channel Partners long-term competitive advantage. During the last five years, Microsoft Channel Partners have commanded high valuations due to strong and sustainable business models, as well as a track record of profitability. Most were small mid-market businesses that had to decide to be...

31 Jan 2023

Rising Interest Rates Chill Private Equity Pace

After a year of strength on the private equity front, 2022 is now in the rearview mirror and industry professionals anticipate a downgrade in performance for the coming year. Despite the fluctuations of the past few years, private equity has withstood the challenges relatively well. However, in certain areas such as exit activity and...