HP Inc. Announces Fiscal 2017 Financial Outlook

HP Inc. Announces Fiscal 2017 Financial Outlook

PALO ALTO, CA - (Marketwired) - October 13, 2016 - HP (NYSE: HPQ)

Estimates GAAP diluted net earnings per share from continuing operations for fiscal 2017 of $1.47 to $1.57

Estimates non-GAAP diluted net earnings per share for fiscal 2017 of $1.55 to $1.65

Estimates fiscal 2017 free cash flow of $2.3 to $2.6 billion

Increases planned quarterly dividend amount by 7%

Announces additional share repurchase authorization of $3 billion for future repurchases

Expects to return 50-75% of fiscal 2017 free cash flow to shareholders through dividends and share repurchases

NEW YORK, New York, Oct. 13, 2016 - Today at HP Inc.'s 2016 Securities Analyst Meeting (SAM), the company provided details on its strategy and opportunities for long-term growth, coupled with its financial outlook for FY17.

I'm proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey, 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.

Fiscal 2017 outlook

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. Fiscal 2017 non-GAAP diluted net earnings per share estimates exclude after-tax costs primarily related to items such as restructuring and other charges, defined benefit plan settlement charges, non-operating retirement-related credits/(charges), tax indemnifications, net valuation allowances, separation taxes and adjustments, acquisition and other related charges, discontinued operations and amortization of intangible assets. Based on the current environment, HP anticipates generating cash flow from operations of approximately $2.8 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, Chief Financial Officer, HP. HP continues to be a compelling investment opportunity. The combination of our recurring revenue streams, negative cash conversion cycle, and efficient operating model drives strong operating margins and cash flow.

Webcast details

A webcast of today's event, along with management presentations and other materials, is available at www.hp.com/investor/SAM2016. 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.

About HP Inc.

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. (NYSE: HPQ) is available at http://www.hp.com.

Use of non-GAAP financial information

To supplement HP's consolidated financial statements presented on a generally accepted accounting principles ( GAAP ) basis, HP provides net revenue on a constant currency basis, as well as non-GAAP operating margin, non-GAAP net earnings, non-GAAP diluted net earnings per share and gross cash financial measures. HP also provides forecasts of non-GAAP diluted net earnings per share. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the slides presented at the 2016 Securities Analyst Meeting. In addition, an explanation of the ways in which HP's management uses these non-GAAP measures to evaluate its business, the substance behind HP's decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP's management compensates for those limitations, and the substantive reasons why HP's management believes that these non-GAAP measures provide useful information to investors is included under Use of non-GAAP financial measures . This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net revenue, operating profit, operating margin, net earnings, diluted net earnings per share or cash and cash equivalents prepared in accordance with GAAP.

Forward-looking statements

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are statem

LINK:	http://www8.hp.com/us/en/hp-news/press-release.html?id=2350700...
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