This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Xerox Holdings said Wednesday that Chuck Butler, its chief business services officer, will be taking over the company’s finance department after just five months in his current role. Butler, 51, will succeed Mirlanda Gecaj effective Dec. 3, Xerox said. Gecaj, who became CFO in February, is leaving to pursue new opportunities as part of a “mutual decision” with ...

HP (HPQ) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended October 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on November 25, might help the stock move higher if these key numbers are better than expectations. O ...

Company Overview - HP Inc. has a market cap of $26.1 billion and is a leading provider in personal computing, printing, 3D printing, hybrid work, and gaming technologies [1] - The company operates through three segments: Personal Systems, Printing, and Corporate Investments [1] Market Position - HP Inc. is categorized as a large-cap stock, benefiting from strong brand recognition and a diversified portfolio that includes PCs, printers, and emerging technologies like 3D printing [2] - The company invests significantly in R&D and focuses on innovation to remain competitive in trends such as AI-enabled PCs and hybrid work solutions [2] Stock Performance - HPQ stock has decreased by 29.7% from its 52-week high of $39.79 on November 25, 2024 [3] - Year-to-date, HPQ shares are down 14.3%, while the Nasdaq Composite has gained 14.7% in 2025 [4] - Over the past 52 weeks, HPQ stock has fallen 15.5%, compared to a 26% increase in the Nasdaq Composite [4] Analyst Ratings - The consensus rating among 15 analysts covering HPQ stock is a "Hold," with a mean price target of $28.30, indicating a modest 1.2% upside potential from current levels [6] - On September 10, HP shares fell more than 2% after Evercore ISI downgraded the stock to "In Line" from "Outperform," citing limited upside potential and sluggish demand in the PC and printing markets [5]

Group 1 - HP Inc. has been highlighted by Jim Cramer as a stock that continues to miss quarterly expectations, despite having repurchased 6% of its shares on average [1] - The company operates in personal computing devices, printers, 3D printing, and related technologies, along with services for hybrid work and gaming [1] - Cramer expressed skepticism about HPQ's potential in the 3D printing sector, stating it will not significantly impact the company's performance and advised against investing in the stock [1] Group 2 - Despite Cramer's negative outlook, HPQ's stock has gained over 14% since his comments [1] - There is a belief that certain AI stocks present greater upside potential and carry less downside risk compared to HPQ [1]

Summary of Key Points from the Conference Call Industry Overview - The conference focuses on the Hardware sector, particularly in the context of AI infrastructure and its impact on data center equipment spending. The demand for AI-related data center equipment is expected to increase significantly, with a projected 54% year-over-year growth in capital expenditures (capex) among the top six cloud providers, reaching $388 billion in 2025 [7][8][10]. Company Insights HP Inc. - HP Inc. is projected to generate $55.1 billion in revenue for fiscal year 2025, reflecting a 3% year-over-year increase. The revenue breakdown is expected to be approximately 70% from the Personal Systems Group and 30% from Printing [29][30]. - The company reported mixed earnings for Q3 2025, with strong PC demand driven by a refresh cycle, but weakness in hardware unit demand and pricing in the Printing segment. This led to a lowered EPS outlook for fiscal year 2025 [30][33]. - Personal Systems demand is bolstered by the Windows 11 refresh and AI PC adoption, with overall PC unit shipments up 5% year-over-year. The company anticipates continued growth in Personal Systems, expecting a 6% year-over-year increase in fiscal Q4 2025 [30][33]. Other Companies - The conference will feature discussions with various companies, including F5, Ingram Micro, NetApp, Axon Enterprise, and Arista Networks, focusing on their respective positions in the hardware and communications technology sectors [4][6]. Key Industry Themes 1. **AI Infrastructure Demand**: The demand for AI infrastructure is expected to grow faster in tier 2 cloud and enterprise sectors compared to hyperscalers, with projected growth rates of 58% and 48% respectively from 2024 to 2028 [12]. 2. **Traditional IT Equipment Recovery**: Traditional enterprise IT equipment is in the early stages of recovery, with server revenue growing by 15% year-over-year in Q1 2025. However, growth is primarily driven by higher average selling prices (ASPs) rather than unit growth [13]. 3. **PC Market Dynamics**: The global PC market is expected to grow by 4% year-over-year in 2025, driven by a refresh cycle and the end of Windows 10 support. HP expects industry unit growth in the second half of 2025 and into 2026 [27][38]. Financial Projections and Risks - HP's financial outlook includes a free cash flow (FCF) of approximately $2.8 billion for fiscal year 2025, with a target to return 100% of FCF to shareholders through dividends and buybacks [29][38]. - Key risks for HP include potential decreases in commercial PC demand due to hybrid work trends, pricing pressures from high channel inventory, and competition in the printing market [36][38]. Management Questions - Questions for management include inquiries about the outlook for PC unit demand, the pace of Windows 11 adoption, and expectations for the commercial print business [37]. This summary encapsulates the critical insights and projections discussed during the conference, highlighting the trends and challenges within the hardware sector, particularly for HP Inc. and its peers.

Core Insights - HP's international operations are crucial for understanding its financial resilience and growth potential, especially in the context of a global economy [2][3] - The company's total revenue for the quarter ending July 2025 was $13.93 billion, reflecting a 3.1% increase year-over-year [4] International Revenue Analysis - Revenue from Europe, Middle East, and Africa was $4.5 billion, accounting for 32.3% of total revenue, which was a 2% miss against the consensus estimate of $4.59 billion [5] - Asia-Pacific and Japan generated $3.32 billion, representing 23.9% of total revenue, exceeding the projected $3.2 billion by 3.79% [6] Future Revenue Expectations - Analysts anticipate HP will report revenues of $14.46 billion for the current fiscal quarter, a 2.9% increase year-over-year, with expected contributions of 32.1% from Europe, Middle East, and Africa and 24.1% from Asia-Pacific and Japan [7] - For the full year, total annual revenue is projected at $54.9 billion, a 2.5% increase compared to the previous year, with Europe, Middle East, and Africa contributing 33.2% and Asia-Pacific and Japan contributing 23.9% [8] Market Performance - Over the past four weeks, HP's stock value increased by 16.7%, outperforming the Zacks S&P 500 composite's 1.6% rise [13] - In the last three months, HP shares rose by 13.3%, compared to a 9.7% increase in the S&P 500 [13]

Group 1: Stock Performance - HP closed at $24.83, down 2.32% from the previous trading session, underperforming the S&P 500 which gained 0.14% [1] - Prior to the recent trading day, HP shares had increased by 6.63%, outperforming the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Group 2: Earnings Expectations - HP is expected to report EPS of $0.74, a decrease of 10.84% from the prior-year quarter, with a projected revenue of $13.69 billion, reflecting a 1.26% increase from the same quarter last year [2] - For the entire fiscal year, earnings are predicted to be $3.09 per share and revenue at $54.5 billion, indicating changes of -8.58% and +1.75% respectively from the previous year [3] Group 3: Analyst Estimates and Valuation - Recent changes in analyst estimates for HP suggest a favorable outlook on business health and profitability, with the Zacks Rank system indicating a 3 (Hold) rating for HP [4][5] - HP's Forward P/E ratio is 8.24, which is lower than the industry average of 11.92, indicating a potential valuation discount [6] - HP has a PEG ratio of 2.06, compared to the industry average PEG ratio of 1.56, suggesting a higher anticipated earnings growth rate relative to its peers [7] Group 4: Industry Context - The Computer - Micro Computers industry, to which HP belongs, has a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Summary of Brady Corporation Conference Call (June 11, 2025) Company Overview - **Company**: Brady Corporation (Ticker: BRC) - **Industry**: Specialty adhesives and printing solutions for safety and identification applications - **Product Portfolio**: Includes wire identification, specialty adhesive labels, printers, safety identification products, healthcare identification, and more [4][5] Core Financial Highlights - **Revenue Generation**: 48% of revenue generated outside the US; diversified customer base with no single customer exceeding 10% of total sales [5] - **R&D Investment**: R&D spending reached an all-time high of 5.1% of sales in fiscal year 2024, aimed at increasing organic growth [6][28] - **Earnings Performance**: Record EPS for four consecutive years (2021-2024), with a 17% increase in EPS from 2023 to 2024 [7][32] - **Operating Cash Flow**: Increased by 22% in 2024 compared to 2023, reaching $255 million, a company record [7] - **Shareholder Returns**: Announced 30 consecutive annual dividend increases; returned $117 million to shareholders in buybacks and dividends in 2024 [9][11] Geographic Revenue Breakdown - **Revenue by Geography**: 52% from the US, 30% from Europe, 8% from Asia, and 10% from Australia and the rest of the Americas [12] - **Asia Growth**: Reported 23% organic growth in Asia, with a recovery observed in China [44] Market and Economic Environment - **Competitive Landscape**: Fragmented market with a focus on innovation and operational efficiency [6] - **Tariff Impact**: Discussed the evolving global tariff situation and its potential impact on operations, with a focus on maintaining pricing power and operational efficiencies [13][48] Acquisitions and Strategic Focus - **Recent Acquisitions**: Notable acquisitions include Nordic ID, Code, and Gravotech, aimed at filling product portfolio gaps and enhancing capabilities [20][53] - **M&A Strategy**: Focused on acquiring technologies that complement existing offerings; maintaining a disciplined approach to acquisitions [10][56] Operational Efficiency - **SG&A Reduction**: Reduced SG&A as a percentage of sales by 800 basis points over the last eight years, contributing to improved profitability [6][30] - **Gross Profit Margin**: Improved to 51.3% in 2024, recovering from a dip during inflationary pressures [27] Future Outlook - **Growth Strategy**: Focused on organic sales growth, innovation, and automation; positioned well for long-term growth with a diverse product portfolio [22][24] - **Financial Position**: Maintains a strong balance sheet with a net cash position of $49 million, allowing for continued investment in growth and shareholder returns [35][36] Key Risks and Considerations - **Economic Environment**: Acknowledged tougher economic conditions in Europe and Australia compared to the Americas and Asia [42][45] - **Tariff Uncertainty**: Ongoing evaluation of the impact of tariffs on operations and pricing strategies [48][64] This summary encapsulates the key points discussed during the Brady Corporation conference call, highlighting the company's financial performance, strategic initiatives, and market outlook.

Core Insights - Dell Technologies (DELL) and HP (HPQ) are significant players in the personal computer market, with DELL focusing on a broader enterprise portfolio and HP concentrating on consumer PCs and printers [1] - The PC market is projected to grow from $222.64 billion in 2025 to $344.13 billion by 2030, at a CAGR of 9.1% [2] - The global PC market is expected to see a shipment growth of 4.1% in 2025, reaching 274 million units [3] Dell Technologies - DELL's AI prospects are strong, with expansion into enterprise deployments and edge computing [4] - The company has introduced new high-performance notebooks and desktops, enhancing productivity for enterprise customers [5] - DELL is benefiting from a PC-refresh cycle, with first-quarter fiscal 2026 CSG revenues at $12.50 billion, up 5% year over year, and commercial client revenues increasing 9% to $11.04 billion [6] - DELL's partnerships with companies like NVIDIA and Microsoft are enhancing its AI capabilities and enterprise AI adoption [7] HP Inc. - HPQ is focusing on innovative product launches, with a growing interest in generative AI-enabled PCs expected to drive demand [8] - The company forecasts that 40-60% of all PCs will be AI PCs in the next three years, launching several AI PCs this year [9][10] - HPQ's reliance on China for manufacturing poses risks if U.S.-China tariffs escalate, potentially impacting margins [11][12] Stock Performance and Valuation - Year-to-date, DELL shares have lost 2.9% and HPQ shares have lost 22.2%, attributed to a challenging macroeconomic environment [13] - DELL shares are trading at a forward Price/Sales ratio of 0.74X, while HPQ's is at 0.43X, indicating that both stocks are currently undervalued [16] - The Zacks Consensus Estimate for DELL's fiscal 2026 earnings is $9.25 per share, reflecting a 13.64% year-over-year increase, while HPQ's estimate for fiscal 2025 is $3.09 per share, indicating an 8.58% decline [19] Conclusion - Both DELL and HPQ are positioned to benefit from the PC market's growth, but DELL has stronger AI momentum and a diversified portfolio, making it a more attractive investment opportunity [20] - HPQ's dependence on China for manufacturing amid geopolitical tensions is a significant challenge [21]

Core Insights - HP's international operations are crucial for understanding its financial resilience and growth potential [1][2] - The company's total revenue for the quarter was $13.22 billion, a 3.3% increase from the previous year [4] International Revenue Trends - Europe, Middle East and Africa generated $4.36 billion, accounting for 33.00% of total revenue, but was a surprise decrease of -7.56% from the expected $4.72 billion [5] - Asia-Pacific and Japan contributed $3.04 billion, representing 23.00% of total revenue, with a surprise decrease of -5.2% from the expected $3.21 billion [6] Future Revenue Projections - Analysts project total revenue for the next fiscal quarter to reach $13.69 billion, a 1.3% increase year-over-year, with Europe, Middle East and Africa expected to contribute $4.95 billion (36.2%) and Asia-Pacific and Japan $3.36 billion (24.6%) [7] - For the full year, total revenue is expected to be $54.97 billion, a 2.6% increase, with contributions from Europe, Middle East and Africa at $19.51 billion (35.5%) and Asia-Pacific and Japan at $13.26 billion (24.1%) [8] Market Observations - HP's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of international revenue trends to project future performance [9][10]