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Printer troubles for HP?

August 22, 2019

With July earning statements due from HP, VMware, Salesforce.com, and Pure Storage as well as Hewlett Packard and Dell, there is mounting worry that the outcome will highlight the bad effects of slower enterprise-technology spending.

Barrons reported earlier this week that analysts are suggesting that the picture for a slow down in enterprise-technology spending will show a negative impact for HP, VMware, Salesforce.com, and Pure Storage as well as Hewlett Packard and Dell.

According to Barrons, Jim Suva, Citi Analyst lowered his estimates on HP, Hewlett Packard Enterprise and Dell. For HP and Dell Suva thinks there will be a “demand pull” before the US-China tariffs, which will give them a good July quarter for PC sales.

Suva suggests that HP’s move to contractual services and 3D printing shows opportunities. and notes that Canon, an important partner for HP in the printer business, made cautious comments recently on the laser-printer segment. Suva also thinks economic weakness could pressure commercial purchases in PCs and printers as we move into calendar 2020.

The Analyst has added a short-term negative catalyst watch for HP Enterprise but not downgraded the company. Dell has kept a buy rating because it is better positioned, according to Suva.

HP is set to release the earning statement for quarter three later today.

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