HP Inc. Reports Fiscal 2024 Fourth Quarter Earnings
HP Inc. (NYSE: HPQ) has released its financial results for the fourth quarter of fiscal 2024, highlighting a positive revenue momentum as the company capitalizes on opportunities in personal systems and print sectors. The quarter concluded on October 31, 2024.
Key Financial Metrics:
| Metric | Q4 FY24 | Q4 FY23 | YOY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $14.1 billion | $13.86 billion | +1.7% | $14 billion |
| GAAP EPS | $0.93 | $0.97 | -4.1% | $0.93 |
| Non-GAAP EPS | $0.93 | $0.90 | +3.3% | $0.93 |
HP's financial performance in the fourth quarter showcases a robust revenue growth driven by a resurgence in its core business areas. Despite a slight decline in GAAP EPS year-over-year, the company's performance aligned with its own and market expectations, affirming stability amidst shifting market conditions.
Segment Revenue Performance:
| Segment | Q4 FY24 Revenue | YOY Change |
|---|---|---|
| Personal Systems | $9.6 billion | +2% |
| Printing | $4.5 billion | +1% |
The Personal Systems segment exhibited healthy growth, predominantly within the commercial sector, offsetting reductions in consumer segments. Parallelly, HP's Printing division sustained a marginal annual increase, highlighting resilience across both consumer and commercial printing.
Key Developments/Operational Highlights: - Increased annual dividend by 5%. - Generated $3.7 billion in net cash from operations, converted into a free cash flow of $3.3 billion for fiscal 2024. - Returned $3.2 billion to shareholders through dividends and share repurchases.
Executive Commentary:
Enrique Lores, HP's President and CEO, underscored the satisfactory fourth-quarter results and emphasized on successfully capturing commercial opportunities shaping the future of work. CFO Karen Parkhill noted progress in enhancing non-GAAP EPS and free cash flow, bolstering confidence for sustained growth into FY25, complemented by a 5% increase in the annual dividend.
Dividends and Share Repurchase Program:
HP announced a quarterly cash dividend of $0.2894 per share, with payment expected on January 2, 2025, highlighting a 5% increase. The company repurchased approximately 25.4 million shares for $900 million in the fourth quarter, maintaining its commitment to maximize shareholder returns.
Forward Guidance:
For the first quarter of fiscal 2025, HP projects GAAP EPS to range between $0.57 and $0.63, and non-GAAP EPS to be within $0.70 to $0.76. Looking ahead through the fiscal year, expectations are set for GAAP EPS between $3.06 and $3.36, while non-GAAP EPS is anticipated to range from $3.45 to $3.75.
Stock Price Movement:
Following the earnings announcement, HP's stock witnessed a modest decline of approximately 0.57%, reflecting market reactions to the modest year-over-year improvements amid broader market dynamics.
In summary, HP's quarterly performance accentuates a strong foothold despite minor fluctuations, while strategic dividend enhancements and forecasts for continued growth underline confidence in capitalizing on emerging market trends.
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