HP Inc. Updates on Financial Outlook

On October 3rd at HP’s 2018 Securities Analyst Meeting (“SAM”), the company provided details on its strategy and opportunities for long-term growth, along with its financial outlook for fiscal 2019.

“We continue to deliver strong growth in earnings and cash flow, while taking profitable share with breakthrough innovation and operational excellence,” said Dion Weisler, President and Chief Executive Officer, HP Inc. “I’m enormously proud of what we have accomplished in the last twelve months. We continued to showcase our ability to reinvent the core, make progress against our growth initiatives, and lay the foundation for our future.”

Fiscal 2019 outlook

For fiscal 2019, the company estimates GAAP diluted net EPS to be in the range of $2.04 to $2.14 and estimates non-GAAP diluted net EPS to be in the range of $2.12 to $2.22. Fiscal 2019 non-GAAP diluted net EPS estimates exclude 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.

Based on the current environment, HP anticipates generating free cash flow of at least $3.7 billion for fiscal 2019.

Long-term HP expects to return 50%-75% of annual free cash flow to shareholders. In fiscal 2019, the company indicated that it expects to return approximately 75% of free cash flow, with a 15% increase in the planned quarterly dividend amount, and the balance returned to shareholders through share repurchases.

“FY18 has been a strong year for HP,” commented Steve Fieler, Chief Financial Officer. “In FY19 we will continue to execute against our core, growth and future strategy, driving productivity improvements, and investing for the future to maximize shareholder value over the long term.”

Webcast details

A webcast of today’s event, along with management presentations and other materials, is available at www.hp.com/investor/SAM2018. 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.

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