01—Abstract
Summary
Summary of the 8-K filed February 28, 2024. Cited figures are marked; the original filing is the authoritative source.
HP Inc. (NYSE: HPQ) filed this Form 8-K on February 28, 2024 to furnish its news release reporting results for its fiscal 2024 first quarter, ended January 31, 2024.
Net revenue was $13.2 billiona, down 4.4% from the prior-year period (down 4.9% in constant currency). GAAP diluted net EPS was $0.62, up from $0.47, and non-GAAP diluted net EPS was $0.81, up from $0.73, both within the previously provided outlook ranges. GAAP operating margin was 7.1% and non-GAAP operating margin was 8.4%.
Cash generation was modest for the quarter. Net cash provided by operating activities was $121 millionb and free cash flow was $25 million. HP returned $0.8 billion to shareholders through share repurchases ($0.5 billion, about 16.7 million shares) and dividends ($0.3 billion, at $0.2756 per share).
Gross cash ended the quarter at $2.4 billionc. Accounts payable declined to $13.3 billion from $14.0 billion at October 31, 2023, and total stockholders' deficit widened to $(1,640) million. Looking ahead, HP estimates fiscal 2024 second-quarter GAAP diluted net EPS of $0.58 to $0.68 and non-GAAP diluted net EPS of $0.76 to $0.86.
For fiscal 2024, it estimates GAAP diluted net EPS of $2.61 to $3.01d, non-GAAP diluted net EPS of $3.25 to $3.65, and free cash flow of $3.1 to $3.6 billion. Personal Systems revenue was $8.8 billion (down 4% year over year) with a 6.1% segment operating margin, while Printing revenue was $4.4 billion (down 5%) with a 19.9% segment operating margin.
02—Key points
Key Highlights
- Net revenue of $13.2 billion, down 4.4% year over year (down 4.9% in constant currency).
- GAAP diluted net EPS of $0.62 (vs. $0.47 prior year) and non-GAAP diluted net EPS of $0.81 (vs. $0.73), both within prior outlook ranges.
- Net cash from operating activities of $121 million and free cash flow of $25 million for the quarter.
- Returned $0.8 billion to shareholders: $0.5 billion in share repurchases (about 16.7 million shares) and $0.3 billion in dividends.
- Personal Systems: $8.8 billion revenue, down 4% year over year, with a 6.1% operating margin; total units up 5%.
- Printing: $4.4 billion revenue, down 5% year over year, with a 19.9% operating margin; hardware units down 17%.
- Fiscal 2024 outlook: non-GAAP diluted net EPS of $3.25 to $3.65 and free cash flow of $3.1 to $3.6 billion.
03—Questions
Frequently Asked Questions
How did HP perform in its fiscal 2024 first quarter?
HP reported net revenue of $13.2 billion, down 4.4% year over year. GAAP diluted net EPS was $0.62, up from $0.47, and non-GAAP diluted net EPS was $0.81, up from $0.73. Both EPS figures fell within the company's previously provided outlook ranges.
What is HP's guidance for fiscal 2024?
HP estimates fiscal 2024 GAAP diluted net EPS of $2.61 to $3.01, non-GAAP diluted net EPS of $3.25 to $3.65, and free cash flow of $3.1 to $3.6 billion. For the second quarter, it estimates GAAP diluted net EPS of $0.58 to $0.68 and non-GAAP diluted net EPS of $0.76 to $0.86.
How much cash did HP generate and return to shareholders this quarter?
Net cash provided by operating activities was $121 million and free cash flow was $25 million. HP returned $0.8 billion to shareholders, including $0.5 billion of share repurchases and $0.3 billion of dividends paid at $0.2756 per share.
How did HP's business segments perform?
Personal Systems net revenue was $8.8 billion, down 4% year over year, with a 6.1% operating margin; Consumer PS revenue was down 1% and Commercial PS down 5%. Printing net revenue was $4.4 billion, down 5%, with a 19.9% operating margin; Supplies revenue was flat.
What do the non-GAAP adjustments exclude?
Non-GAAP net earnings exclude after-tax adjustments of $186 million, or $0.19 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits and tax adjustments.
04—Continue