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Jul 31, 2024

HP Q3 2024 Earnings Report

HP's Q3 2024 financial performance showed revenue growth and EPS within the provided outlook.

Key Takeaways

HP Inc. reported a 2.4% increase in net revenue to $13.5 billion for the third quarter of fiscal year 2024. GAAP diluted net EPS was $0.65, and non-GAAP diluted net EPS was $0.83. The company generated $1.3 billion in free cash flow and returned $0.9 billion to shareholders through share repurchases and dividends.

Net revenue increased by 2.4% year over year to $13.5 billion.

GAAP diluted net EPS was $0.65, within the outlook of $0.63 to $0.77.

Non-GAAP diluted net EPS was $0.83, within the outlook of $0.78 to $0.92.

Free cash flow for the quarter was $1.3 billion.

Total Revenue
$13.5B
Previous year: $13.2B
+2.4%
EPS
$0.83
Previous year: $0.86
-3.5%
GAAP Operating Margin
7%
Previous year: 7.2%
-2.8%
Cash Dividends Declared per Share
$0.276
Gross Profit
$2.91B
Previous year: $2.82B
+3.0%
Cash and Equivalents
$2.8B
Previous year: $1.72B
+63.0%
Free Cash Flow
$1.3B
Previous year: $900M
+44.4%
Total Assets
$38.1B
Previous year: $36.6B
+3.9%

HP

HP

HP Revenue by Segment

Forward Guidance

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

Positive Outlook

  • GAAP diluted net EPS to be in the range of $0.74 to $0.84 for Q4 2024
  • Non-GAAP diluted net EPS to be in the range of $0.89 to $0.99 for Q4 2024
  • GAAP diluted net EPS to be in the range of $2.62 to $2.72 for fiscal year 2024
  • Non-GAAP diluted net EPS to be in the range of $3.35 to $3.45 for fiscal year 2024
  • Free cash flow in the range of $3.1 to $3.6 billion for fiscal year 2024

Challenges Ahead

  • Fiscal 2024 fourth quarter non-GAAP diluted net EPS estimates exclude $0.15 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, debt extinguishment charges and the related tax impact on these items.
  • Fiscal 2024 non-GAAP diluted net EPS estimates exclude $0.73 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, debt extinguishment charges and the related tax impact on these items.
  • Estimates based on information available at this time
  • Estimates could differ materially from reported amounts
  • Assumes no obligation to update forward looking statements

Revenue & Expenses

Visualization of income flow from segment revenue to net income