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Jul 31, 2020

HP Q3 2020 Earnings Report

Reported strong Q3 results, reflecting the agility of their teams and the strength of their portfolio.

Key Takeaways

HP Inc. reported fiscal 2020 third quarter results with net revenue of $14.3 billion, a decrease of 2.1% year-over-year. GAAP diluted net EPS was $0.52, and non-GAAP diluted net EPS was $0.49. The company generated $1.6 billion in free cash flow and returned $1.2 billion to shareholders through share repurchases and dividends.

Third quarter GAAP diluted net earnings per share ("EPS") of $0.52, above the previously provided outlook of $0.35 to $0.41 per share

Third quarter non-GAAP diluted net EPS of $0.49, above the previously provided outlook of $0.39 to $0.45 per share

Third quarter net revenue of $14.3 billion, down 2.1% from the prior-year period

Third quarter net cash from operating activities of $1.7 billion, free cash flow of $1.6 billion

Total Revenue
$14.3B
Previous year: $14.6B
-2.1%
EPS
$0.49
Previous year: $0.58
-15.5%
GAAP Operating Margin
5.4%
Previous year: 7.4%
-27.0%
Non-GAAP Operating Margin
6.1%
Previous year: 7.6%
-19.7%
Cash dividends declared per share
$0.176
Gross Profit
$2.39B
Previous year: $2.91B
-17.6%
Cash and Equivalents
$4.68B
Previous year: $4.92B
-4.9%
Free Cash Flow
$1.6B
Total Assets
$34.2B
Previous year: $32.4B
+5.7%

HP

HP

HP Revenue by Segment

Forward Guidance

For the fiscal 2020 fourth quarter, HP estimates GAAP diluted net EPS to be in the range of $0.32 to $0.36 and non-GAAP diluted net EPS to be in the range of $0.50 to $0.54. HP also estimates fiscal 2020 free cash flow to be in the range of $2.5 to $3.0 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income