HP Inc Reports Q3 Fiscal 2024 Financial Results
Intellectia.AI Updated: 2024-08-28
HP Inc. Reports Q3 Fiscal 2024 Financial Results
PALO ALTO, Calif., Aug. 28, 2024 — HP Inc. (NYSE: HPQ) today announced its financial results for the third quarter of fiscal year 2024, ending July 31, 2024.
Key Financial Metrics
| Metric | Current Q3 2024 | Prior Q3 2023 | % Change YoY | Consensus Estimate | % Difference from Consensus |
|---|---|---|---|---|---|
| Total Revenue (USD) | $13.5 billion | $13.18 billion | +2.4% | $13.38 billion | +0.9% |
| GAAP Diluted EPS (USD) | $0.65 | $0.76 | -14.5% | Not provided | Not applicable |
| Non-GAAP Diluted EPS (USD) | $0.83 | $0.86 | -3.5% | $0.86 | -3.5% |
| Net Cash from Operations (USD) | $1.4 billion | Not provided | Not applicable | Not applicable | Not applicable |
Interpretation: HP's total revenue for Q3 2024 exceeded consensus estimates slightly, marking a year-over-year (YoY) growth of 2.4%. Despite this revenue growth, the company's GAAP and non-GAAP earnings per share (EPS) showed a decrease from the prior year, mildly missing the consensus estimates for non-GAAP EPS.
Revenue Performance Across Major Segments
| Segment | Q3 2024 Revenue (USD) | Q3 2023 Revenue (USD) | % Change YoY |
|---|---|---|---|
| Personal Systems | $9.4 billion | $8.95 billion | +5% |
| Printing | $4.1 billion | $4.23 billion | -3% |
Interpretation: The Personal Systems segment showed robust performance with a 5% YoY growth. However, the Printing segment demonstrated a decline, particularly within Commercial Printing, which saw a drop of 5% YoY.
Key Developments and Operational Highlights
- Returned $0.9 billion to shareholders through share repurchases and dividends.
- Increased share repurchase authorization to $10.0 billion.
- Net free cash flow stood at $1.3 billion.
- Launched next-generation AI PC lineup.
Comments from Company Officers
Enrique Lores, President and CEO of HP Inc., commented, "We are pleased with our return to revenue growth and proud of the innovations delivered in the quarter, including the launch of our next-generation AI PC lineup. We remain focused on our strategic plan and will prioritize opportunities that drive long-term profitable growth, while taking decisive action to navigate a dynamic environment."
Dividends and Share Repurchase Program
- HP paid a quarterly cash dividend of $0.2756 per share, totaling $0.3 billion.
- Purchased approximately 17.1 million shares of common stock, utilizing $0.6 billion.
Forward Guidance
For Q4 2024, HP estimates: - GAAP diluted net EPS in the range of $0.74 to $0.84. - Non-GAAP diluted net EPS in the range of $0.89 to $0.99. - Fiscal 2024 GAAP diluted net EPS between $2.62 and $2.72 and non-GAAP diluted net EPS between $3.35 and $3.45. - Expected free cash flow for fiscal 2024 is projected between $3.1 billion and $3.6 billion.
Stock Price Movement
Post-earnings release, HP's stock experienced a decline of approximately 2.36%.
Conclusion: HP's Q3 2024 results depicted revenue growth and strategic progress amidst a challenging market environment. Continued focus on innovation and long-term growth, alongside substantial shareholder returns, highlighted the company's operational emphasis moving forward.
