HP reports fourth-quarter, full-year results
HP Inc. reported its fiscal 2019 net revenue of $58.8 billion, up 0.5% from the prior-year period. For the quarter, net revenue was $15.4 billion, up 0.3% from the prior-year period. For the full year, net earnings dropped 41% to $3.2 billion, compared to $5.3 billion last year; the company was impacted by a 73-percent earnings drop in the fourth quarter.
In the fourth quarter, Printing business net revenue was down 6% year over year (down 5% in constant currency) with a 15.6% operating margin. Total hardware units were down 9% with Commercial hardware units down 1% and Consumer hardware units down 10%, the company said. Supplies net revenue was down 7% (down 7% in constant currency).
| HP Inc.’s fiscal 2019 full-year and fourth quarter financial performance | |||||||||||||||
| FY19 | FY18 | Y/Y | Q4 FY19 | Q4 FY18 | Y/Y | ||||||||||
| GAAP net revenue ($B) | $ | 58.8 | $ | 58.5 | 0.5% | $ | 15.4 | $ | 15.4 | 0.3% | |||||
| GAAP operating margin | 6.6% | 6.6% | – | 6.1% | 6.5% | (0.4) pts | |||||||||
| GAAP net earnings ($B) | $ | 3.2 | $ | 5.3 | (41)% | $ | 0.4 | $ | 1.5 | (73)% | |||||
| GAAP diluted net EPS | $ | 2.07 | $ | 3.26 | (37)% | $ | 0.26 | $ | 0.91 | (71)% | |||||
| Non-GAAP operating margin | 7.3% | 7.1% | 0.2 pts | 7.3% | 7.0% | 0.3 pts | |||||||||
| Non-GAAP net earnings ($B) | $ | 3.4 | $ | 3.3 | 3% | $ | 0.9 | $ | 0.9 | 4% | |||||
| Non-GAAP diluted net EPS | $ | 2.24 | $ | 2.02 | 11% | $ | 0.60 | $ | 0.54 | 11% | |||||
| Net cash provided by operating activities ($B) | $ | 4.7 | $ | 4.5 | 3% | $ | 0.6 | $ | 1.0 | (39)% | |||||
| Free cash flow ($B) | $ | 4.0 | $ | 4.2 | (4)% | $ | 0.4 | $ | 0.8 | (53)% | |||||
“2019 marks our third consecutive year of revenue, non-GAAP operating profit and non-GAAP earnings growth, with non-GAAP EPS up 11% and strong free cash flow of $4 billion,” said Enrique Lores, president and CEO, HP. “We delivered an excellent Q4, with 11% non-GAAP EPS growth. Our strategy is working, and we are confident in our business heading into FY20.”
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