HP revenue up in Q3 results

Highlights:

• Third quarter GAAP diluted net earnings per share ("EPS") of $0.65, within the previously provided outlook of $0.63 to $0.77 per share.
• Third quarter non-GAAP diluted net EPS of $0.83, within the previously provided outlook of $0.78 to $0.92 per share.
• Third quarter net revenue of $13.5 billion, up 2.4% from the prior-year period
• Third quarter net cash provided by operating activities of $1.4 billion, free cash flow of $1.3 billion
• The third quarter returned $0.9 billion to shareholders in the form of share repurchases and dividends.
• Share repurchase authorisation increased to $10.0 billion.

Net revenue and EPS results

HP Inc. announced fiscal 2024 third-quarter net revenue of $13.5 billion, up 2% (up 3% in constant currency) from the prior-year period.
 
“We are pleased with our return to revenue growth and proud of the innovations delivered in the quarter, including the launch of our next-generation AI PC lineup,”, said Enrique Lores, President and CEO of HP Inc. “We remain focused on our strategic plan and will prioritise opportunities that drive long-term profitable growth while taking decisive action to navigate a dynamic environment.”
 
Third-quarter GAAP diluted net EPS was $0.65, down from $0.76 in the prior-year period and within the previously provided outlook of $0.63 to $0.77. Third quarter non-GAAP diluted net EPS was $0.83, down from $0.86 in the prior-year period and within the previously provided outlook of $0.78 to $0.92. Third quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $179 million, or $0.18 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortisation of intangible assets, non-operating retirement-related credits and tax adjustments.
 
Asset Management
HP's net cash provided by operating activities in the third quarter of fiscal 2024 was $1.4 billion. Accounts receivable ended the quarter at $4.7 billion, flat quarter over quarter at 31 days. Inventory ended the quarter at $7.8 billion, down three days quarter over quarter to 67 days. Accounts payable ended the quarter at $15.4 billion, down 1-day quarter over quarter to 131 days.
 
HP generated $1.3 billion of free cash flow in the third quarter. Free cash flow includes net cash provided by operating activities of $1.4 billion adjusted for net investments in leases from integrated financing of $42 million and net investments in property, plant and equipment of $162 million.
 
HP’s dividend payment of $0.2756 per share in the third quarter resulted in cash usage of $0.3 billion. HP also utilised $0.6 billion of cash during the quarter to repurchase approximately 17.1 million shares of common stock in the open market. HP exited the quarter with $2.9 billion in gross cash, including cash and cash equivalents of $2.8 billion, restricted cash of $93 million, and short-term investments of $3 million in other current assets. Restricted cash relates to amounts collected and held on behalf of a third party for trade receivables previously sold.
 
Fiscal 2024 third quarter segment results

• Personal Systems net revenue was $9.4 billion, up 5% year over year (up 5% in constant currency) with a 6.4% operating margin. Consumer PS net revenue was down 1%, and Commercial PS net revenue was up 8%. Total units were up 1%, with Consumer PS units down 6% and Commercial PS units up 6%.
• Printing net revenue was $4.1 billion, down 3% year over year (down 2% in constant currency), with a 17.3% operating margin. Consumer Printing net revenue was up 2%, and Commercial Printing net revenue was down 5%. Supplies net revenue was down 2% (down 1% in constant currency). Total hardware units were down 2%, with Consumer Printing units flat and Commercial Printing units down 4%.