Web income and EPS effects
HP Inc. and its subsidiaries (“HP”) introduced fiscal 2024 internet income of $53.6 billion, down 0.3% (down 0.2% in consistent forex) from the prior-year length.
Fiscal 2024 GAAP diluted internet EPS was once $2.81, down from $3.26 within the prior-year and above the in the past equipped outlook of $2.62 to $2.72. Fiscal 2024 non-GAAP diluted internet EPS was once $3.38, up from $3.28 within the prior-year length and inside the in the past equipped outlook of $3.35 to $3.45. Fiscal 2024 non-GAAP internet profits and non-GAAP diluted internet EPS exclude after-tax changes of $564 million, or $0.57 in line with diluted proportion, associated with restructuring and different fees, acquisition and divestiture fees, amortization of intangible belongings, debt extinguishment prices, non-operating retirement-related credit, tax changes, and the linked tax have an effect on on these things.
Fourth quarter internet income was once $14.1 billion, up 1.7% (up 2.3% in consistent forex) from the prior-year length.
Fourth quarter GAAP diluted internet EPS was once $0.93, down from $0.97 within the prior-year length and above the in the past equipped outlook of $0.74 to $0.84. Fourth quarter non-GAAP diluted internet EPS was once $0.93, up from $0.90 within the prior-year length and inside the in the past equipped outlook of $0.89 to $0.99. Fourth quarter non-GAAP internet profits and non-GAAP diluted internet EPS excludes after-tax changes of $6 million, or nil in line with diluted proportion, associated with restructuring and different fees, acquisition and divestiture fees, amortization of intangible belongings, debt extinguishment prices, non-operating retirement-related credit, tax changes, and the linked tax have an effect on on these things.
“We’re proud of our This fall efficiency the place we noticed income enlargement for the second one consecutive quarter, pushed by way of secure development in Non-public Programs and Print,” mentioned Enrique Lores, HP President and CEO. “With momentum heading into FY25, we’re well-positioned to capitalize at the business alternative and lead the way forward for paintings.”
“In FY24 we drove non-GAAP EPS and loose money drift enlargement which allowed us to go back roughly $3.2 billion to shareholders,” mentioned Karen Parkhill, HP CFO. “As we glance forward, we’re properly placed to ship forged enlargement throughout income, non-GAAP internet profits, EPS and loose money drift in FY25. And given our self assurance someday, we’re elevating our annual dividend by way of 5 p.c.”
Asset control
HP generated $3.7 billion in internet money equipped by way of working actions and $3.3 billion of loose money drift in fiscal 2024. Loose money drift comprises internet money equipped by way of working actions of $3.7 billion adjusted for internet investments in rentals from built-in financing of $165 million and internet investments in belongings, plant and gear of $592 million. HP applied $2.1 billion of money right through fiscal 2024 to repurchase roughly 62.7 million stocks of not unusual inventory within the open marketplace. When blended with the $1.1 billion of money used to pay dividends, HP returned 96% of its loose money drift to shareholders in fiscal 2024.
HP’s internet money equipped by way of working actions within the fourth quarter of fiscal 2024 was once $1.6 billion. Accounts receivable ended the quarter at $5.1 billion, up 2 days quarter over quarter at 33 days. Stock ended the quarter at $7.7 billion, down 4 days quarter over quarter to 63 days. Accounts payable ended the quarter at $16.9 billion, up 7 days quarter over quarter to 138 days.
HP generated $1.5 billion of loose money drift within the fourth quarter. Loose money drift comprises internet money equipped by way of working actions of $1.6 billion adjusted for internet investments in rentals from built-in financing of $42 million and internet investments in belongings, plant and gear of $153 million.
HP’s dividend fee of $0.2756 in line with proportion within the fourth quarter ended in money utilization of $263 million. HP additionally applied $900 million of money right through the quarter to repurchase roughly 25.4 million stocks of not unusual inventory within the open marketplace. HP exited the quarter with $3.3 billion in gross money, which contains money, money equivalents and limited money and temporary investments of $3 million integrated in different present belongings. Money, money equivalents and limited money comprises $15 million of limited money associated with quantities amassed and hung on behalf of a 3rd celebration for industry receivables in the past offered.
The HP board of administrators has declared a quarterly money dividend of $0.2894 in line with proportion at the corporate’s not unusual inventory, payable on January 2, 2025 to stockholders of report as of the shut of industrial on December 11, 2024. That is the primary dividend of HP’s 2025 fiscal 12 months and represents an building up of five% from the prior dividend.
Fiscal 2024 fourth quarter phase effects
Non-public Programs internet income was once $9.6 billion, up 2% 12 months over 12 months (up 3% in consistent forex) with a 5.7% working margin. Shopper PS internet income was once down 4% and Business PS internet income was once up 5%. Overall gadgets had been up 1% with Shopper PS gadgets down 3% and Business PS gadgets up 4%.
Printing internet income was once $4.5 billion, up 1% 12 months over 12 months (up 2% in consistent forex) with a 19.6% working margin. Shopper Printing internet income was once up 3% and Business Printing internet income was once down 1%. Provides internet income was once up 2% (up 3% in consistent forex). Overall {hardware} gadgets had been up 9.5%, with Shopper Printing gadgets up 10% and Business Printing gadgets up 9%.
Outlook
For the fiscal 2025 first quarter, HP estimates GAAP diluted internet EPS to be within the vary of $0.57 to $0.63 and non-GAAP diluted internet EPS to be within the vary of $0.70 to $0.76. Fiscal 2025 first quarter non-GAAP diluted internet EPS estimates exclude $0.13 in line with diluted proportion, basically associated with restructuring and different fees, acquisition and divestiture fees, amortization of intangible belongings, non-operating retirement-related credit, tax changes, and the linked tax have an effect on on these things.
For fiscal 2025, HP estimates GAAP diluted internet EPS to be within the vary of $3.06 to $3.36 and non-GAAP diluted internet EPS to be within the vary of $3.45 to $3.75. Fiscal 2025 non-GAAP diluted internet EPS estimates exclude $0.39 in line with diluted proportion, basically associated with restructuring and different fees, acquisition and divestiture fees, amortization of intangible belongings, non-operating retirement-related credit, tax changes, and the linked tax have an effect on on these things. For fiscal 2025, HP anticipates producing loose money drift within the vary of $3.2 to $3.6 billion.
Additional info on HP’s profits, together with further monetary research and an profits evaluation presentation, is to be had on HP’s Investor Family members web site at investor.hp.com.
HP’s FY24 This fall profits convention name is out there by means of audio webcast at www.hp.com/investor/2024Q4Webcast.
About HP Inc.
HP Inc. (NYSE: HPQ) is a world era chief and writer of answers that permit other people to convey their concepts to existence and hook up with the issues that subject maximum. Running in additional than 170 international locations, HP delivers quite a lot of leading edge and sustainable units, services and products and subscriptions for private computing, printing, 3-D printing, hybrid paintings, gaming, and extra. For more info, please talk over with
Use of non-GAAP monetary knowledge
To complement HP’s consolidated condensed monetary statements offered on a in most cases permitted accounting ideas (“GAAP”) foundation, HP supplies internet income on a relentless forex foundation, non-GAAP general working expense, non-GAAP working benefit, non-GAAP working margin, non-GAAP different source of revenue and bills, non-GAAP tax price, non-GAAP internet profits, non-GAAP diluted internet EPS, loose money drift, gross money and internet money (debt) monetary measures. HP additionally supplies forecasts of non-GAAP diluted internet EPS and loose money drift. Reconciliations of those non-GAAP monetary measures to probably the most at once similar GAAP monetary measures are integrated within the tables under or in different places within the fabrics accompanying this information unlock. As well as, a proof of the techniques during which HP’s control makes use of those non-GAAP measures to guage its trade, the substance at the back of HP’s choice to make use of those non-GAAP measures, the fabric barriers related to the usage of those non-GAAP measures, the way during which HP’s control compensates for the ones barriers, and the substantive the explanation why HP’s control believes that those non-GAAP measures supply helpful knowledge to traders is integrated below “Use of non-GAAP monetary measures” after the tables under. This extra non-GAAP monetary knowledge isn’t intended to be thought to be in isolation or as an alternative choice to internet income, working expense, working benefit, working margin, different source of revenue and bills, tax price, internet profits, diluted internet EPS, money equipped by way of working actions or money, money equivalents, and limited money ready in line with GAAP.
Ahead-looking statements
This report comprises forward-looking statements in accordance with present expectancies and assumptions that contain dangers and uncertainties. If the hazards or uncertainties ever materialize or the assumptions turn out flawed, they might impact the trade and result of operations of HP Inc. and its consolidated subsidiaries which might fluctuate materially from the ones expressed or implied by way of such forward-looking statements and assumptions.
All statements rather then statements of historic truth are statements that may be deemed forward-looking statements, together with, however now not restricted to, projections of internet income, margins, bills, efficient tax charges, internet profits, internet profits in line with proportion, money flows, receive advantages plan investment, deferred taxes, proportion repurchases, foreign currencies trade charges or different monetary pieces; any projections of the volume, timing or have an effect on of value financial savings or restructuring and different fees, deliberate structural value discounts and productiveness projects; any statements of the plans, methods and goals of control for long term operations, together with, however now not restricted to, our trade type and transformation, our sustainability targets, our go-to-market technique, the execution of restructuring plans and any ensuing value financial savings (together with the fiscal 2023 plan), internet income or profitability enhancements or different monetary affects; any statements regarding the anticipated construction, call for, efficiency, marketplace proportion or aggressive efficiency in terms of merchandise or services and products; any statements relating to possible provide constraints, element shortages, production disruptions or logistics demanding situations; any statements relating to present or long term macroeconomic tendencies or occasions and the have an effect on of the ones tendencies and occasions on HP and its monetary efficiency; any statements relating to pending investigations, claims, disputes or different litigation issues; any statements of expectation or trust as to the timing and anticipated advantages of acquisitions and different trade mixture and funding transactions; and any statements of assumptions underlying any of the foregoing. Ahead-looking statements too can in most cases be recognized by way of phrases corresponding to “long term,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “tasks,” “will,” “would,” “may just,” “can,” “might,” and equivalent phrases.
Dangers, uncertainties and assumptions that might impact our trade and result of operations come with components touching on to HP’s skill to execute on its strategic plans, together with the in the past introduced projects, trade type adjustments and transformation; the improvement and transition of latest services and the enhancement of present services to satisfy evolving buyer wishes and reply to rising technological tendencies, together with synthetic intelligence; the usage of synthetic intelligence; the have an effect on of macroeconomic and geopolitical tendencies, adjustments and occasions, together with the continued army conflicts in Ukraine and the Center East or tensions within the Taiwan Strait and South China Sea and the regional and world ramifications of those occasions; volatility in world capital markets and foreign currencies, will increase in benchmark rates of interest, the results of inflation and instability of monetary establishments; dangers related to HP’s global operations and the results of industrial disruption occasions, together with the ones due to local weather exchange; the wish to arrange (and reliance on) third-party providers, together with with appreciate to offer constraints and element shortages, and the wish to arrange HP’s world, multi-tier distribution community and possible misuse of pricing systems by way of HP’s channel companions, adapt to new or converting marketplaces and successfully ship HP’s services and products; the execution and function of contracts by way of HP and its providers, consumers, shoppers and companions, together with logistical demanding situations with appreciate to such execution and function; the aggressive pressures confronted by way of HP’s companies; the have an effect on of third-party claims of IP infringement; effectively innovating, creating and executing HP’s go-to-market technique, together with on-line, omnichannel and contractual gross sales, in an evolving distribution, reseller and buyer panorama; effectively competing and keeping up the worth proposition of HP’s merchandise, together with provides and services and products; demanding situations to HP’s skill to correctly forecast inventories, call for and pricing, that may be because of HP’s multi-tiered channel, gross sales of HP’s merchandise to unauthorized resellers or unauthorized resale of HP’s merchandise or our asymmetric gross sales cycle; the hiring and retention of key workers; the result of our restructuring plans (together with the fiscal 2023 plan), together with estimates and assumptions associated with the price (together with any conceivable disruption of HP’s trade) and the expected advantages of our restructuring plans; the safety of HP’s highbrow belongings belongings, together with highbrow belongings approved from 0.33 events; disruptions in operations from machine safety dangers, knowledge coverage breaches, or cyberattacks; HP’s skill to handle its credit standing, fulfill its debt tasks and entire any pondered proportion repurchases, different capital go back systems or different strategic transactions; adjustments in estimates and assumptions HP makes in reference to the preparation of its monetary statements; the have an effect on of adjustments to federal, state, native and international rules and laws, together with environmental laws and tax rules; integration and different dangers related to trade mixture and funding transactions; our aspirations associated with environmental, social and governance issues; possible affects, liabilities and prices from pending or possible investigations, claims and disputes; the effectiveness of our interior keep watch over over monetary reporting; and different dangers which can be described in HP’s Annual Document on Shape 10-Okay for the fiscal 12 months ended October 31, 2023 and HP’s different filings with the Securities and Change Fee (“SEC”). HP’s fiscal 2023 plan comprises HP’s efforts to make the most of long term enlargement alternatives, together with however now not restricted to, investments to power enlargement, investments in our other people, bettering product combine, using structural value financial savings and different productiveness measures. Structural value financial savings constitute gross discounts in prices pushed by way of operational potency, virtual transformation, and portfolio optimization. Those projects come with however aren’t restricted to team of workers discounts, platform simplification, systems consolidation and productiveness measures undertaken by way of HP, which HP expects to be sustainable within the longer-term. Those structural value financial savings are internet of any new routine prices due to those projects and exclude one-time investments to generate such financial savings. HP’s expectancies at the longer-term sustainability of such structural value financial savings are in accordance with its present trade operations and marketplace dynamics and might be considerably impacted by way of quite a lot of components, together with however now not restricted to HP’s evolving trade fashions, long term funding choices, marketplace setting and era panorama.
As in prior classes, the monetary knowledge set forth on this report, together with any tax-related pieces, displays estimates in accordance with knowledge to be had at the moment. Whilst HP believes those estimates to be affordable, those quantities may just fluctuate materially from reported quantities in HP’s Annual Document on Shape 10-Okay for the fiscal years finishing October 31, 2024 and October 31, 2025, Quarterly Document on Shape 10-Q for the fiscal quarter finishing January 31, 2025, and HP’s different filings with the SEC. The forward-looking statements on this report are made as of the date of this report and HP assumes no legal responsibility and does now not intend to replace those forward-looking statements.
HP’s Investor Family members web site at investor.hp.com comprises a vital quantity of details about HP, together with monetary and different knowledge for traders. HP encourages traders to talk over with its web site once in a while, as knowledge is up to date, and new knowledge is posted. The content material of HP’s web site isn’t integrated by way of reference into this report or in another record or report HP information with the SEC, and any references to HP’s web site are meant to be inactive textual references best.
To be had in PDF structure — together with all tables
