“I’m proud of the progress we have made in our first year as the new HP,” 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.”
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. Based on the current environment, HP anticipates generating cash flow from operations of approximately $2.8 billion 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, CFO, HP.