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A Look at HP’s Printing Business Segment

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Revenue rose 7% YoY in fiscal 4Q17

The US (SPY) hardware giant HP Inc.’s (HPQ) Printing business segment saw revenue growth of 7% YoY (year-over-year) in fiscal 4Q17. Revenue in this segment for 4Q17 rose to $4.87 billion. Comparatively, Printing revenues rose 3% YoY to $18.8 billion in fiscal 2017.

During HP’s 4Q17 earnings call, CEO Dion Weisler stated, “In Q4, total revenue was up 7% year-over-year with growth across all three geographic regions. We delivered year-over-year revenue increases in consumer hardware, commercial hardware, and supplies.”

Printing revenue in 4Q17 was driven by growth in Supplies as well as hardware units sold. HP’s management has estimated a 40% share in its Office and Home businesses at the end of calendar 3Q17.

Deals and partnerships

HP signed a multi-million Graphic’s deal with Lightning Source. According to this agreement, HP will deploy 24 PageWide digital presses to five printing sites. Lightning Source printing portfolio accounts for approximately 40% of books sold on Amazon (AMZN). This deal is expected to transform the distribution and sales model for book publishers worldwide.

HP continued to gain new partners and market share in the A3 space. In November 2017, HP closed the acquisition of Samsung’s (SSNLF) printing business. The company is now poised to gain traction in Printing due to a broad portfolio coupled with technology leadership. HP has valued the total available market (or TAM) at $55 billion in the A3 segment where it has gained critical IP as well as several laser and ink offerings and is positioned to successfully target this space.

HP is also eyeing the fast-growing 3D printing segment and is looking to grow via expanding markets, repeat orders, acquisitions and partnerships.

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