PALO ALTO, Calif., Nov. 21, 2017 (GLOBE NEWSWIRE) -- HP (NYSE:HPQ) — HP Inc. Reported Fiscal 2017 fourth quarter results.

● Fiscal 2017 GAAP diluted net earnings per share from continuing operations of $1.48, within the previously provided outlook of $1.46 to $1.50 per share
● Fiscal 2017 non-GAAP diluted net earnings per share of $1.65, within the previously provided outlook of $1.63 to $1.66 per share
● Fiscal 2017 net revenue of $52.1 billion, up 8% (up 9% in constant currency) from the prior-year period
● Fiscal 2017 net cash provided by operating activities of $3.7 billion
● Fiscal 2017 returned $2.3 billion to shareholders in the form of share repurchases and dividends
● Fourth quarter GAAP diluted net earnings per share from continuing operations of $0.39, within the previously provided outlook of $0.37 to $0.41 per share
● Fourth quarter non-GAAP diluted net earnings per share of $0.44, within the previously provided outlook of $0.42 to $0.45 per share
● Fourth quarter net revenue of $13.9 billion, up 11% (up 12% in constant currency) from the prior-year period
● Fourth quarter net cash provided by operating activities of $0.7 billion
● Fourth quarter returned $722 million to shareholders in the form of share repurchases and dividends

 
HP Inc.'s fiscal 2017 full-year and fourth quarter financial performance
    FY17         FY16       Y/Y       Q4 FY17         Q4 FY16       Y/Y  
GAAP net revenue ($B) $ 52.1     $ 48.2     8%     $ 13.9     $ 12.5     11%  
GAAP operating margin from continuing operations   6.8%         7.4%       (0.6) pts       6.4%         5.3%       1.1 pts  
GAAP net earnings from continuing operations ($B) $ 2.5     $ 2.7     (5)%     $ 0.7     $ 0.5     29%  
GAAP diluted net earnings per share from continuing operations $ 1.48     $ 1.53     (3)%     $ 0.39     $ 0.30     30%  
Non-GAAP operating margin   7.4%         7.9%       (0.5) pts       7.3%         7.0%       0.3 pts  
Non-GAAP net earnings ($B) $ 2.8     $ 2.8     1%     $ 0.7     $ 0.6     22%  
Non-GAAP diluted net earnings per share $ 1.65     $ 1.60     3%     $ 0.44     $ 0.36     22%  
Net cash provided by operating activities ($B) $ 3.7     $ 3.3     13%     $ 0.7     $ 0.7     (3)%  
                                           

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 fiscal 2017 net revenue of $52.1 billion, up 8% as reported and up 9% in constant currency from the prior-year period.

Fiscal 2017 GAAP diluted net earnings per share (“EPS”) from continuing operations was $1.48, down from $1.53 in the prior-year period and within the previously provided outlook of $1.46 to $1.50. Fiscal 2017 non-GAAP diluted net EPS was $1.65, up from $1.60 in the prior-year period and within the previously provided outlook of $1.63 to $1.66. Fiscal 2017 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $289 million, or $0.17 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 indemnification amounts.

Fourth quarter net revenue was $13.9 billion, up 11% (up 12% in constant currency) from the prior-year period.

Fourth quarter GAAP diluted net EPS from continuing operations was $0.39, up from $0.30 in the prior-year period and within the previously provided outlook of $0.37 to $0.41. Fourth quarter non-GAAP diluted net EPS was $0.44, up from $0.36 in the prior-year period and within the previously provided outlook of $0.42 to $0.45. Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $89 million, or $0.05 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 indemnification amounts.

“Our results demonstrate that HP is strong and getting stronger,” said Dion Weisler, President and CEO, HP Inc. “We posted top-line growth across both Personal Systems and Print, with broad-based, double-digit growth in all three regions, while also growing operating profit and non-GAAP EPS year-over-year.”

Asset management
HP’s net cash provided by operating activities in the fourth quarter was $0.7 billion. Accounts receivable ended the quarter at $4.4 billion, flat quarter over quarter at 29 days. Inventory ended the quarter at $5.8 billion, up 2 days quarter over quarter to 46 days. Accounts payable ended the quarter at $13.3 billion, down 3 days quarter over quarter to 105 days.

HP’s dividend payment of $0.1327 per share in the fourth quarter resulted in cash usage of $0.2 billion. HP also utilized $0.5 billion of cash during the quarter to repurchase approximately 24.4 million shares of common stock in the open market. HP exited the quarter with $8.1 billion in gross cash, which includes cash and cash equivalents and short-term investments of $1.1 billion included in other current assets.

HP generated $3.7 billion in net cash provided by operating activities and $3.3 billion of free cash flow in fiscal 2017. Free cash flow includes net cash provided by operating activities and net investments in property, plant and equipment of $0.4 billion. HP utilized approximately $1.4 billion of cash during fiscal 2017 to repurchase approximately 80 million shares of common stock in the open market. When combined with the almost $0.9 billion of cash used to pay dividends in fiscal 2017, HP returned 69% of its free cash flow to shareholders in fiscal 2017.

Fiscal 2017 fourth quarter segment results

  • Personal Systems net revenue was up 13% year over year (up 14% in constant currency) with a 3.8% operating margin. Commercial net revenue increased 11% and Consumer net revenue increased 18%. Total units were up 6% with Notebooks units up 8% and Desktops units up 2%.
  • Printing net revenue was up 7% year over year (up 7% in constant currency) with a 16.6% operating margin. Total hardware units were up 3% with Commercial hardware units flat and Consumer hardware units up 3%. Supplies net revenue was up 10% (up 11% in constant currency).

Outlook
For the fiscal 2018 first quarter, HP estimates GAAP diluted net EPS from continuing operations to be in the range of $0.38 to $0.42 and non-GAAP diluted net EPS to be in the range of $0.40 to $0.43. Fiscal 2018 first quarter non-GAAP diluted net EPS estimates exclude $0.01 to $0.02 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related credits/(charges), net tax indemnifications, net valuation allowances and discontinued operations.

For fiscal 2018, HP raises estimates for GAAP diluted net EPS from continuing operations to be in the range of $1.70 to $1.80 and non-GAAP diluted net EPS to be in the range of $1.75 to $1.85. Fiscal 2018 non-GAAP diluted net EPS estimates exclude $0.05 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related credits/(charges), net tax indemnifications, net valuation allowances and discontinued operations.

More information on HP's earnings, including additional financial analysis and an earnings overview presentation, is available on HP's Investor Relations website at www.hp.com/investor/home.

HP's FY17 Q4 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2017Q4Webcast.

About HP Inc.
HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. (NYSE: HPQ) is available at http://www.hp.com.

Use of non-GAAP financial information
To supplement HP’s consolidated condensed financial statements presented on a generally accepted accounting principles (“GAAP”) basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) financial measures. HP also provides forecasts of non-GAAP diluted net EPS. A reconciliation of the adjustments to GAAP results for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP’s management uses these non-GAAP measures to evaluate its business, the substance behind HP’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP’s management compensates for those limitations, and the substantive reasons why HP’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net revenue, operating profit from continuing operations, operating margin from continuing operations, net earnings from continuing operations, diluted net EPS from continuing operations or cash and cash equivalents prepared in accordance with GAAP.