HP introduces Fiscal 2024 Results: Insights from the Fourth Quarter

HP’s Fiscal 2024: A Mixed Bag of Results

HP Inc. has just dropped some intriguing numbers for fiscal 2024, reporting a net revenue of $53.6 billion. That’s a slight dip of 0.3% compared to the previous year, or 0.2% when you adjust for constant currency. So, what does this mean for HP? Well, it’s a bit of a mixed bag. Their GAAP diluted net EPS (earnings per share) came in at $2.81, down from $3.26 last year, but it actually exceeded their earlier forecast, which was between $2.62 and $2.72. On the flip side, their non-GAAP diluted net EPS saw a bit of a lift, rising to $3.38 from $3.28 last year.

What’s behind these numbers? HP’s non-GAAP figures exclude various after-tax adjustments totaling $564 million, which cover everything from restructuring costs to tax impacts. It’s a lot of financial jargon, but it essentially shows that HP is navigating some challenging waters while still managing to keep its head above water.

Quarterly Highlights: Steady Growth

Looking at the fourth quarter, HP reported net revenue of $14.1 billion, marking a 1.7% increase from the same period last year. Their GAAP diluted net EPS for this quarter was $0.93, slightly down from $0.97 last year but still above the forecast of $0.74 to $0.84. Interestingly, their non-GAAP diluted net EPS also held steady at $0.93, up from $0.90 last year.

Enrique Lores, HP’s President and CEO, expressed optimism about the company’s performance, highlighting that they achieved revenue growth for the second consecutive quarter, thanks to solid progress in both Personal Systems and Print. With momentum building as they head into fiscal 2025, Lores believes HP is well-positioned to seize commercial opportunities and shape the future of work. Sounds promising, right?

Returning Value to Shareholders

HP isn’t just focused on numbers; they’re also committed to returning value to their shareholders. CFO Karen Parkhill announced that they returned approximately $3.2 billion to shareholders in fiscal 2024. This included a significant $2.1 billion used to repurchase around 62.7 million shares of common stock. With a strong focus on cash flow, HP generated $3.7 billion in net cash from operating activities and $3.3 billion in free cash flow during the year.

What’s even more exciting? HP is raising its annual dividend by 5%. That’s a nice little bonus for shareholders to look forward to in 2025.

Diving Into the Segment Results

Breaking it down by segments, HP’s Personal Systems net revenue hit $9.6 billion, reflecting a 2% year-over-year increase. Interestingly, while consumer sales dipped by 4%, the commercial side saw a 5% boost. This trend indicates that businesses are still investing in technology, even if consumers are tightening their belts.

On the Printing side, revenue reached $4.5 billion, up 1% year-over-year. Consumer Printing revenue was up by 3%, while Commercial Printing saw a slight decline of 1%. Total hardware units sold were up by 9.5%, suggesting that people are still keen on investing in printers despite the digital shift.

What Lies Ahead for HP?

Looking forward to fiscal 2025, HP has set some ambitious targets. They estimate GAAP diluted net EPS to be in the range of $3.06 to $3.36 and non-GAAP diluted net EPS between $3.45 to $3.75. They also anticipate generating between $3.2 to $3.6 billion in free cash flow.

As we move into the new fiscal year, it will be interesting to see how HP navigates the challenges ahead. With a focus on innovation and shareholder value, HP seems poised to tackle whatever comes next. Will they continue to build on their momentum? Only time will tell, but for now, they appear to be on a steady path forward.

Background Information

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About HP:

Founded by Bill Hewlett and Dave Packard in a garage in 1939, HP (Hewlett-Packard) is a global technology giant known for its pioneering innovations in computing and printing technology. With a legacy of over eight decades, HP has consistently delivered a wide range of high-quality products and services, including personal computers, printers, servers, and software solutions.

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