PALO ALTO, Calif., Aug. 23, 2017 (GLOBE NEWSWIRE) -- HP (NYSE:HPQ)
- Third quarter net revenue of $13.1 billion, up 10% as reported and up 11% in constant currency from the prior-year period
- Third quarter GAAP diluted net earnings per share from continuing operations of $0.41, above the previously provided outlook of $0.36 to $0.40 per share
- Third quarter non-GAAP diluted net earnings per share of $0.43, within the previously provided outlook of $0.40 to $0.43 per share
- Third quarter cash provided by operating activities of $1.8 billion
- Third quarter returned $524 million to shareholders in the form of share repurchases and dividends
| HP Inc.'s fiscal 2017 third quarter financial performance | ||||||||||||||
| Q3 FY17
| Q3 FY16
| Y/Y | ||||||||||||
| GAAP net revenue ($B) | $ | 13.1 | $ | 11.9 | 10 | % | ||||||||
| GAAP operating margin from continuing operations | 7.3 | % | 9.4 | % | (2.1 pts) | |||||||||
| GAAP net earnings from continuing operations ($B) | $ | 0.7 | $ | 0.8 | (17 | %) | ||||||||
| GAAP diluted net earnings per share from continuing operations | $ | 0.41 | $ | 0.49 | (16 | %) | ||||||||
| Non-GAAP operating margin | 7.7 | % | 9.4 | % | (1.7 pts) | |||||||||
| Non-GAAP net earnings ($B) | $ | 0.7 | $ | 0.8 | (11 | %) | ||||||||
| Non-GAAP diluted net earnings per share | $ | 0.43 | $ | 0.48 | (10 | %) | ||||||||
| Cash provided by operating activities ($B) | $ | 1.8 | $ | 1.1 | 66 | % | ||||||||
Notes to table
Information about HP Inc.'s use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.
Net revenue and EPS results
HP Inc. (“HP”) announced third quarter net revenue of $13.1 billion, up 10% as reported and up 11% in constant currency from the prior-year period.
Third quarter GAAP diluted net earnings per share (“EPS”) from continuing operations was $0.41, down from $0.49 in the prior-year period and above the previously provided outlook of $0.36 to $0.40. Third quarter non-GAAP diluted net EPS was $0.43, down from $0.48 in the prior-year period and within the previously provided outlook of $0.40 to $0.43. Third quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $39 million, or $0.02 per share, related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related credits/(charges) and net tax indemnifications.
“Q3 was another outstanding quarter of successfully executing our reinvention strategy,” said Dion Weisler, President and CEO, HP Inc. “We stabilized supplies revenue a quarter earlier than expected, posted double-digit revenue growth, delivered non-GAAP earnings per share at the high end of our previously provided outlook range and generated approximately $1.7 billion in free cash flow.”
Asset management
HP’s cash provided by operating activities in the third quarter was $1.8 billion. Accounts receivable ended the quarter at $4.2 billion, up 2 days quarter over quarter to 29 days. Inventory ended the quarter at $5.2 billion, up 1 day quarter over quarter to 44 days. Accounts payable ended the quarter at $12.8 billion, up 8 days quarter over quarter to 108 days. HP’s dividend payment of $0.1327 per share in the third quarter resulted in cash usage of $0.2 billion. HP also utilized $0.3 billion of cash during the quarter to repurchase approximately 16.2 million shares of common stock in the open market. HP exited the quarter with $8.0 billion in gross cash, which includes cash and cash equivalents and short-term investments of $1.0 billion included in other current assets.
Fiscal 2017 third quarter segment results
- Personal Systems net revenue was up 12% year over year (up 13% in constant currency) with a 3.7% operating margin. Commercial net revenue increased 11% and Consumer net revenue increased 14%. Total units were up 7% with Notebooks units up 12% and Desktops units down 3%.
- Printing net revenue was up 6% year over year (up 7% in constant currency) with a 17.3% operating margin. Total hardware units were up 1% with Commercial hardware units flat and Consumer hardware units up 1%. Supplies net revenue was up 10% (up 10% in constant currency).
