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Jan 31, 2020

HP Q1 2020 Earnings Report

HP's Q1 2020 earnings were released, revealing mixed financial results with revenue slightly decreased but EPS exceeding expectations.

Key Takeaways

HP Inc. reported Q1 2020 net revenue of $14.6 billion, a slight decrease of 0.6% year-over-year. GAAP diluted net EPS was $0.46, while non-GAAP diluted net EPS was $0.65, both exceeding previous outlooks. The company generated $1.3 billion in net cash from operating activities and $1.1 billion in free cash flow.

GAAP diluted net EPS was $0.46, surpassing the outlook of $0.39 to $0.42 per share.

Non-GAAP diluted net EPS reached $0.65, exceeding the projected $0.53 to $0.56 per share.

Net revenue totaled $14.6 billion, a minor decrease of 0.6% compared to the previous year.

Free cash flow stood at $1.1 billion, indicating strong cash generation capabilities.

Total Revenue
$14.6B
Previous year: $14.7B
-0.6%
EPS
$0.65
Previous year: $0.52
+25.0%
GAAP Operating Margin
5.9%
Previous year: 6.3%
-6.3%
Non-GAAP Operating Margin
8.1%
Previous year: 6.9%
+17.4%
Cash dividends declared per share
$0.35
Gross Profit
$2.87B
Previous year: $2.61B
+10.0%
Cash and Equivalents
$4.21B
Previous year: $3.37B
+24.9%
Free Cash Flow
$1.1B
Total Assets
$31.7B
Previous year: $32.5B
-2.6%

HP

HP

HP Revenue by Segment

Forward Guidance

For the fiscal 2020 second quarter, HP estimates GAAP diluted net EPS to be in the range of $0.46 to $0.50 and non-GAAP diluted net EPS to be in the range of $0.49 to $0.53. For fiscal 2020, HP is updating its estimate of GAAP diluted net EPS to be in the range of $2.03 to $2.13 and revises its previous estimate of non-GAAP diluted net EPS to be in the range of $2.33 to $2.43.

Revenue & Expenses

Visualization of income flow from segment revenue to net income