On November 26, 2024, HP Inc (HPQ, Financial) released its 8-K filing detailing its fiscal 2024 full-year and fourth-quarter financial results. HP Inc, a leader in the PC and printing markets, has focused on these sectors since its split from Hewlett Packard Enterprise in 2015. The company operates globally, with a significant portion of its sales occurring outside the United States.
Performance Overview and Challenges
HP Inc reported a fiscal 2024 net revenue of $53.6 billion, a slight decrease of 0.3% from the previous year. Despite this, the company achieved a GAAP diluted net EPS of $2.81, exceeding the previously provided outlook of $2.62 to $2.72. The non-GAAP diluted net EPS was $3.38, aligning with the forecasted range of $3.35 to $3.45. These results highlight HP's ability to maintain profitability amidst a challenging market environment.
Financial Achievements and Industry Impact
HP Inc's financial achievements are noteworthy, particularly in the hardware industry where margins can be tight. The company generated $3.7 billion in net cash from operating activities and $3.3 billion in free cash flow for fiscal 2024. This robust cash flow enabled HP to return $3.2 billion to shareholders through share repurchases and dividends, demonstrating a strong commitment to shareholder value.
Income Statement and Key Metrics
For the fourth quarter, HP Inc reported net revenue of $14.1 billion, a 1.7% increase from the prior-year period. The GAAP diluted net EPS for the quarter was $0.93, surpassing the estimated earnings per share of $0.85. The non-GAAP diluted net EPS also stood at $0.93, within the expected range of $0.89 to $0.99. These metrics are crucial as they reflect the company's operational efficiency and ability to generate earnings.
| Metric | Q4 FY24 | Q4 FY23 | Change |
|---|---|---|---|
| Net Revenue ($B) | 14.1 | 13.8 | 1.7% |
| GAAP Net Earnings ($B) | 0.9 | 1.0 | (7)% |
| GAAP Diluted EPS | 0.93 | 0.97 | (4)% |
| Non-GAAP Diluted EPS | 0.93 | 0.90 | 3% |
Analysis and Commentary
HP Inc's performance in fiscal 2024 reflects its strategic focus on maintaining profitability and shareholder returns. The company's ability to exceed EPS estimates is a positive indicator for investors, particularly in a competitive hardware market. HP's President and CEO, Enrique Lores, stated,
We are pleased with our Q4 performance where we saw revenue growth for the second consecutive quarter, driven by steady progress in Personal Systems and Print."This sentiment underscores the company's resilience and strategic positioning for future growth.
HP's CFO, Karen Parkhill, added,
In FY24 we drove non-GAAP EPS and free cash flow growth which allowed us to return approximately $3.2 billion to shareholders."This highlights the company's focus on financial discipline and shareholder value, which are critical for long-term success in the technology sector.
Conclusion
HP Inc's fiscal 2024 results demonstrate its ability to navigate market challenges while delivering value to shareholders. The company's strong cash flow and strategic focus on core markets position it well for future growth. Investors and stakeholders will be keen to see how HP leverages its strengths in the coming fiscal year.
Explore the complete 8-K earnings release (here) from HP Inc for further details.
