The company is expected to enter the 3D printing sector at some point, or as some call it additive manufacturing. Hewlett-Packard has not released what it plans to financially commit to the project yet but it is expected to release its first product in 2016.
The big news from Hewlett-Packard this quarter was that it will split into two new publicly traded companies: Hewlett-Packard Enterprise and HP Inc. This is expected to be completed by the end of 2015 where there will be a tax-free distribution of shares to stockholders.
The new HP Inc.’s CEO will be Dion Weisler, who is currently executive vice-president of HP’s printing and personal systems businesses. The original Hewlett-Packard CEO, Meg Whitman will be the president and CEO of the Enterprise company, as well as chairman of the board of HP Inc. The current lead independent director of Hewlett-Packard’s board will become chairman of the board of the new Enterprise company. Each of these new companies is expected to post annual revenues of around $50 billion once the separation is complete.
Following this news, the company will also increase the number of firings by 5,000 up to a total of 55,000, according to the Wall Street Journal. Under its restructuring plan, Hewlett-Packard has already fired around 36,000 people.
Deutsche Bank maintained a Buy rating for Hewlett-Packard and moved up its price target to $45 from $40, which was just one day before earnings report.
Shares of Hewlett-Packard were up 1% at $37.92 in the first two hours of trading. The company’s stock has a consensus analyst price target of $40.34 and a 52-week trading range of $25.09 to $38.25. H-P’s highest analyst price target is up at $45 (thanks to Deutsche Bank above), and the lowest analyst price target is now $36. Hewlett-Packard has a market cap of $70 billion.
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