How Hewlett-Packard Is Increasing Value to Its Shareholders
In fiscal 3Q16, Hewlett-Packard’s (HPQ) cash flow from operations was ~$1.1 billion, and its free cash flow was $1 billion.
Of the 26 analysts covering Hewlett-Packard’s (HPQ) stock, 11 have given it “buy” recommendations and 15 have given it “hold” recommendations. There were no “sell” recommendations.
Hewlett-Packard’s (HPQ) Printing business group reported revenue of $4.4 billion in fiscal 3Q16, which fell by 14% year-over-year.
One of Hewlett-Packard’s (HPQ) key objectives is to place hardware units with a higher usage of supplies.
Hewlett-Packard (HPQ) believes that the 3D printing space will be disruptive—and profitable—in the next few years.
Hewlett-Packard’s (HPQ) Personal Systems PC Group reported revenue of $7.5 billion in fiscal 3Q16, which was flat YoY (year-over-year) and rose by 2% YoY on a constant currency basis.
According to IDC, worldwide PC shipments fell by 4.5% YoY year-over-year in 2Q16 to 62.4 million units. IDC had earlier projected the market would decline by 7.4% YoY.
In April 2016, Hewlett-Packard (HPQ) introduced the HP Spectre, the world’s thinnest laptop, at the New York Times International Luxury Conference.
On August 24, 2016, Hewlett-Packard Enterprise (HPQ) announced its fiscal 3Q16 results. It reported revenue of $11.9 billion—a 4% fall year-over-year and a 1% decline YoY on a constant currency basis.
Salesforce is a prominent player in the software space, along with Microsoft (MSFT), Oracle (ORCL), IBM (IBM), and SAP (SAP).
Salesforce was trading at a forward EV-to-EBITDA multiple of ~23.4x on August 22, 2016.
Considering the speed at which Salesforce is announcing acquisitions, analysts feel that the revenue growth in cloud space might be slowing down.
The BeyondCore acquisition is likely to fuel the competition between Salesforce and Microsoft.
In this article, we’ll discuss the possibility of a trend of increasing M&A (mergers and acquisitions) in the SaaS (software-as-a-service) space.
In June 2016, Salesforce announced its largest acquisition ever, that of Demandware for $2.8 billion.
2016 marked the second time on record when technology sector deals accounted for the majority of the M&A made in a year.
By adding BeyondCore to its portfolio, Salesforce aims to strengthen its CRM offerings with predictive data analytics and AI capabilities.
According to Gartner’s recent research report the CRM space, Salesforce continues to lead with a 19.7% market share.
BeyondCore is a business intelligence data company with expertise in the AI (artificial intelligence), deep learning, and business analytics area.
Salesforce is scheduled to announce its fiscal 2Q16 results on August 31, 2016. It’s very likely that it will meet or exceed analysts’ expectations.