HP Inc. reported a 2% increase in fiscal 2024 third quarter net revenue to $13.5 billion, up from the previous year. The company’s President and CEO, Enrique Lores, expressed satisfaction with the revenue growth and the innovations delivered, including the launch of its next-generation AI PC lineup. The company’s GAAP diluted net EPS was $0.65, down from $0.76 in the prior-year period and within the previously provided outlook of $0.63 to $0.77. Non-GAAP diluted net EPS was $0.83, down from $0.86 in the prior-year period and within the previously provided outlook of $0.78 to $0.92.
HP’s net cash provided by operating activities in the third quarter was $1.4 billion, with accounts receivable ending at $4.7 billion, inventory ending at $7.8 billion, and accounts payable ending at $15.4 billion. The company generated $1.3 billion of free cash flow in the third quarter, including net cash provided by operating activities and net investments in leases from integrated financing. HP’s dividend payment of $0.2756 per share resulted in cash usage of $0.3 billion, and the company exited the quarter with $2.9 billion in gross cash, including cash and cash equivalents of $2.8 billion, restricted cash of $93 million, and short-term investments of $3 million.
HP estimates GAAP diluted net EPS for the fiscal 2024 fourth quarter to be $0.74 to $0.84, with non-GAAP diluted net EPS between $0.89 to $0.99. Non-GAAP diluted net EPS excludes $0.15 per diluted share due to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, and debt extinguishment charges.
For fiscal 2024, GAAP diluted net EPS ranges from $2.62 to $2.72, with non-GAAP diluted net EPS between $3.35 to $3.45. Non-GAAP diluted net EPS excludes $0.73 per diluted share due to restructuring and other charges. HP anticipates generating free cash flow between $3.1 to $3.6 billion.
