HP Inc. Announces Fiscal 2017 Financial Outlook

NEW YORK, New York, Oct. 13, 2016 – Today at HP Inc.’s 2016 Securities Analyst Meeting (SAM), the company provided details on its strategy and opportunities for long-term growth, coupled with its financial outlook for FY17.

“I’m proud of the progress we have made in our first year as the new HP.  Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey,” said Dion Weisler, President and CEO, HP.  “We are confident in our strategy and believe it will continue to produce reliable returns and cash flow, while also enabling HP to invest in differentiated innovation and long-term growth.”

Weisler added, “Although our markets remain very challenged, we are committed to innovating in the core and continue to see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitization of graphics and manufacturing through our leading 3D printing solutions.”

Fiscal 2017 outlook

For fiscal 2017, the company estimates GAAP diluted net earnings per share from continuing operations to be in the range of $1.47 to $1.57 and estimates non-GAAP diluted net earnings per share to be in the range of $1.55 to $1.65. Fiscal 2017 non-GAAP diluted net earnings per share estimates exclude after-tax costs primarily related to items such as restructuring and other charges, defined benefit plan settlement charges, non-operating retirement-related credits/(charges), tax indemnifications, net valuation allowances, separation taxes and adjustments, acquisition and other related charges, discontinued operations and amortization of intangible assets.  Based on the current environment, HP anticipates generating cash flow from operations of approximately $2.8 to $3.1 billion in fiscal 2017. With about $0.5 billion in net capital expenditures, free cash flow outlook is in the range of $2.3 to $2.6 billion for fiscal 2017.

HP expects to return 50%-75% of annual free cash flow to shareholders through a combination of a robust dividend and regular share buy backs. In fiscal 2017, the company indicated that it expects to be at the higher end of that range, with a 7% increase in the planned quarterly dividend amount, and the balance returned to shareholders through share repurchases.  HP also announced an increase in its share repurchase program of $3 billion.

“We are increasing our quarterly dividend as a demonstration of our confidence in our execution and the sustainability of our cash flow,” said Cathie Lesjak, Chief Financial Officer, HP. “HP continues to be a compelling investment opportunity.  The combination of our recurring revenue streams, negative cash conversion cycle, and efficient operating model drives strong operating margins and cash flow.” 

Webcast details

A webcast of today’s event, along with management presentations and other materials, is available at www.hp.com/investor/SAM2016. This news release contains only a summary of some of the information being presented at today’s event and should be read in conjunction with the management presentations and other materials made available on that website.

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.

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