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HP 8-K Report, Financial Results (Aug 28, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed August 28, 2024
Period End
August 27, 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 August 28, 2024. Cited figures are marked; the original filing is the authoritative source.

HP Inc. (NYSE: HPQ) filed this Form 8-K on August 28, 2024 to furnish its news release reporting results for the fiscal 2024 third quarter ended July 31, 2024, and to disclose that its Board of Directors increased the share repurchase authorization to $10.0 billiona in total on August 27, 2024.

The release reports net revenue of $13.5 billionb, up 2.4% from the prior-year period, GAAP diluted net EPS of $0.65 (down from $0.76), and non-GAAP diluted net EPS of $0.83 (down from $0.86). Both EPS figures fell within the company's previously provided outlook ranges. GAAP operating margin was 7.0% versus 7.2% a year earlier, and non-GAAP operating margin was 8.1% versus 8.8%.

Cash generation was a bright spot in the quarter. Net cash provided by operating activities was $1.4 billionc and free cash flow was $1.3 billion. HP returned $0.9 billion to shareholders through share repurchases ($0.6 billion, about 17.1 million shares) and dividends ($0.3 billion).

The company exited the quarter with $2.9 billiond in gross cash. Personal Systems revenue was $9.4 billion, up 5% year over year with a 6.4% operating margin, while Printing revenue was $4.1 billion, down 3% with a 17.3% operating margin. For fiscal 2024, HP estimates GAAP diluted net EPS of $2.62 to $2.72 and non-GAAP diluted net EPS of $3.35 to $3.45, and anticipates free cash flow of $3.1 to $3.6 billion.

For the fourth quarter, it estimates GAAP diluted net EPS of $0.74 to $0.84 and non-GAAP diluted net EPS of $0.89 to $0.99. The repurchase authorization has no expiration date and does not obligate HP to buy any particular amount of stock; it may be suspended at any time.

02—Key points

Key Highlights

  1. Q3 FY24 net revenue of $13.5 billion, up 2.4% year over year; CEO Enrique Lores cited a return to revenue growth.
  2. GAAP diluted EPS of $0.65 and non-GAAP diluted EPS of $0.83, both within previously provided outlook ranges, though down from $0.76 and $0.86 a year earlier.
  3. Net cash from operations of $1.4 billion and free cash flow of $1.3 billion in the quarter.
  4. Board increased the share repurchase authorization to $10.0 billion total, with no expiration date.
  5. Q3 shareholder returns of $0.9 billion, including $0.6 billion of repurchases (about 17.1 million shares) and dividends.
  6. Personal Systems revenue rose 5% to $9.4 billion, while Printing fell 3% to $4.1 billion with a 17.3% operating margin.
  7. Fiscal 2024 guidance: non-GAAP diluted EPS of $3.35 to $3.45 and free cash flow of $3.1 to $3.6 billion.

03—Questions

Frequently Asked Questions

  1. Did HP meet its earnings expectations for the third quarter?

    Yes. GAAP diluted EPS of $0.65 and non-GAAP diluted EPS of $0.83 were both within the company's previously provided outlook ranges of $0.63 to $0.77 and $0.78 to $0.92, respectively. Both were lower than the prior-year figures of $0.76 and $0.86.

  2. How much is HP authorized to spend on share repurchases now?

    On August 27, 2024, the Board increased the repurchase authorization to $10.0 billion in total, inclusive of the amount remaining under the previous authorization. The authorization has no expiration date, does not require HP to repurchase any particular amount, and may be suspended at HP's discretion.

  3. What is HP's outlook for fiscal 2024?

    HP estimates fiscal 2024 GAAP diluted net EPS of $2.62 to $2.72 and non-GAAP diluted net EPS of $3.35 to $3.45. It anticipates free cash flow of $3.1 to $3.6 billion. For the fourth quarter, it expects GAAP diluted EPS of $0.74 to $0.84 and non-GAAP diluted EPS of $0.89 to $0.99.

  4. How did HP's segments perform in the quarter?

    Personal Systems net revenue was $9.4 billion, up 5% year over year, with a 6.4% operating margin. Printing net revenue was $4.1 billion, down 3% year over year, with a 17.3% operating margin. Supplies revenue fell 2%.

  5. How strong was HP's cash generation in the quarter?

    Net cash provided by operating activities was $1.4 billion, compared with $1.0 billion a year earlier, and free cash flow was $1.3 billion. HP exited the quarter with $2.9 billion in gross cash.

04—Continue

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