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HP 8-K Report, Financial Results (May 29, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 29, 2024
Period End
May 29, 2024
Security
HPQ
In the record · 2016–202610-K1310-Q338-K140

HPQ filed 13 annual reports (10-K), 33 quarterly reports (10-Q) and 140 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · May ’18May ’18
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Restructuring8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed May 29, 2024. Cited figures are marked; the original filing is the authoritative source.

HP Inc. filed this Form 8-K on May 29, 2024 to furnish its news release reporting results for its fiscal 2024 second quarter, ended April 30, 2024.

Net revenue was $12.8 billiona, down 0.8% year over year (down 1.2% in constant currency). GAAP diluted net EPS was $0.61, down from $1.06 a year earlier, while non-GAAP diluted net EPS was $0.82, up from $0.79. Both fell within the company's previously provided outlook ranges of $0.58 to $0.68 and $0.76 to $0.86, respectively.

GAAP net earnings were $607 millionb, versus $1,054 million in the prior-year quarter. Segment performance was mixed. Personal Systems net revenue was $8.4 billion, up 3% year over year, with a 6.0% operating margin.

Printing net revenue was $4.4 billionc, down 8%, with a 19.0% operating margin, and Printing hardware units fell 17%. Cash generation was modest: net cash provided by operating activities was $581 million and free cash flow was $481 million. HP paid $269 million in dividends and repurchased $100 million of common stock during the quarter, and it ended the quarter with $2.5 billion in gross cash.

For fiscal 2024, HP estimates GAAP diluted net EPS of $2.60 to $2.90d and non-GAAP diluted net EPS of $3.30 to $3.60, and it anticipates free cash flow of $3.1 to $3.6 billion. For the third quarter, it estimates GAAP diluted net EPS of $0.63 to $0.77 and non-GAAP diluted net EPS of $0.78 to $0.92. The release also cites a Q2 inventory of $7.5 billion, up 9 days quarter over quarter to 70 days, and accounts payable of $14.4 billion, up 16 days to 132 days.

02—Key points

Key Highlights

  1. Q2 FY24 net revenue of $12.8 billion, down 0.8% year over year (down 1.2% in constant currency).
  2. GAAP diluted net EPS of $0.61 vs. $1.06 a year earlier; non-GAAP diluted net EPS of $0.82 vs. $0.79, both within prior outlook ranges.
  3. Personal Systems revenue rose 3% to $8.4 billion with a 6.0% operating margin; Commercial PS was up 6% and Consumer PS down 3%.
  4. Printing revenue fell 8% to $4.4 billion, with a 19.0% operating margin; total hardware units were down 17%.
  5. Q2 operating cash flow was $581 million and free cash flow was $481 million; the company returned $0.4 billion to shareholders via dividends and buybacks.
  6. FY24 outlook: GAAP diluted EPS of $2.60 to $2.90, non-GAAP diluted EPS of $3.30 to $3.60, and free cash flow of $3.1 to $3.6 billion.
  7. Q3 FY24 outlook: GAAP diluted EPS of $0.63 to $0.77 and non-GAAP diluted EPS of $0.78 to $0.92.

03—Questions

Frequently Asked Questions

  1. How did HP perform against its own earnings guidance for the quarter?

    Both measures landed within the previously provided outlook. GAAP diluted EPS of $0.61 was within the $0.58 to $0.68 range, and non-GAAP diluted EPS of $0.82 was within the $0.76 to $0.86 range.

  2. Why did GAAP earnings decline so sharply from the prior year?

    GAAP net earnings were $607 million versus $1,054 million a year earlier. The prior-year quarter included a $616 million tax benefit (a $0.62 per share effect in the non-GAAP reconciliation), which the company excluded from non-GAAP results. The current quarter had restructuring and other charges of $71 million versus $200 million a year earlier.

  3. Which business drove growth and which declined?

    Personal Systems grew 3% to $8.4 billion, led by Commercial PS (up 6%) and unit growth of 7%. Printing fell 8% to $4.4 billion, with Consumer Printing down 16% and Commercial Printing down 12%.

  4. How much cash did HP generate and return to shareholders?

    HP generated $581 million of operating cash flow and $481 million of free cash flow in the quarter. It paid $269 million in cash dividends and repurchased $100 million of stock, and it ended the quarter with $2.5 billion in gross cash.

  5. What does HP expect for the full fiscal year 2024?

    HP estimates GAAP diluted EPS of $2.60 to $2.90, non-GAAP diluted EPS of $3.30 to $3.60, and free cash flow of $3.1 to $3.6 billion for fiscal 2024.

04—Continue

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