Ink World staff09.01.20
HP Inc. and its subsidiaries announced fiscal 2020 third-quarter net revenue of $14.3 billion, down 2.1% (down 0.2% in constant currency) from the prior-year period.
Third-quarter GAAP diluted net EPS was $0.52, down from $0.78 in the prior-year period and above the previously provided outlook of $0.35 to $0.41.
Third-quarter non-GAAP diluted net EPS was $0.49, down from $0.58 in the prior-year period and above the previously provided outlook of $0.39 to $0.45.
Third-quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $32 million, or $0.03 per diluted share, related to restructuring and other charges, acquisition-related charges (credits), amortization of intangible assets, non-operating retirement-related (credits)/charges, debt extinguishment costs and tax adjustments.
“Our strong Q3 results and solid beat for the quarter, in the face of unprecedented uncertainty, reflects the agility of our teams and the strength of our portfolio,” said Enrique Lores, HP’s president and CEO. “We’re leveraging our leadership across consumer and commercial markets to capitalize on opportunities – from the essential role of the PC in an era of remote work and school to the rise of subscription-based business models to enable greater flexibility."
HP’s net cash provided by operating activities in the third quarter of fiscal 2020 was $1.7 billion.
HP generated $1.6 billion of free cash flow in the third quarter.
HP’s dividend payment of $0.1762 per share in the third quarter resulted in cash usage of $251 million. HP also utilized $953 million of cash during the quarter to repurchase approximately 56 million shares of common stock in the open market. HP exited the quarter with $4.9 billion in gross cash, which includes cash and cash equivalents and short-term investments of $0.2 billion included in other current assets.
For the fiscal 2020 fourth quarter, HP estimates GAAP diluted net EPS to be in the range of $0.32 to $0.36 and non-GAAP diluted net EPS to be in the range of $0.50 to $0.54.
Fiscal 2020 Fourth quarter non-GAAP diluted net EPS estimates exclude $0.18 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, tax adjustments and the related tax impact on these items.
For fiscal 2020, HP estimates GAAP diluted net EPS to be in the range of $1.83 to $1.87 and non-GAAP diluted net EPS to be in the range of $2.16 to $2.20.
Fiscal 2020 non-GAAP diluted net EPS estimates exclude $0.33 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, debt extinguishment costs, tax adjustments and the related tax impact on these items.
HP also estimates fiscal 2020 free cash flow to be in the range of $2.5 to $3 billion.