HP Inc. Announces Fiscal 2018 Financial Outlook

HP Inc. Announces Fiscal 2018 Financial Outlook

PALO ALTO, CA - October 12, 2017 - HP (NYSE: HPQ) -

News highlights:

Estimates GAAP diluted net earnings per share from continuing operations for fiscal 2018 of $1.69 to $1.79

Estimates non-GAAP diluted net earnings per share for fiscal 2018 of $1.74 to $1.84

Estimates fiscal 2018 free cash flow of at least $3.0 billion

Expects to return 50% - 75% of fiscal 2018 free cash flow to shareholders through dividends and share repurchases

Today at HP Inc.'s 2017 Securities Analyst Meeting (SAM), the company provided details on its strategy and opportunities for long-term growth, coupled with its financial outlook for fiscal 2018.

Fiscal 2017 has been a tremendous year for HP and we are just getting started. We've delivered reliable earnings and cash flow, taken profitable share, driven productivity, stabilized our core businesses, and importantly, we grew, said Dion Weisler, President and Chief Executive Officer, HP Inc. We are well positioned to lead in the core, accelerate growth opportunities, like A3 and Graphics in Printing and commercial transformation in Personal Systems, and capture the future with 3D Printing in plastics and now metals.

Fiscal 2018 outlook

For fiscal 2018, the company estimates GAAP diluted net earnings per share from continuing operations to be in the range of $1.69 to $1.79 and estimates non-GAAP diluted net earnings per share to be in the range of $1.74 to $1.84. Fiscal 2018 non-GAAP diluted net earnings per share estimates exclude after-tax costs primarily related to items such as restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related credits/(charges), net tax indemnifications, net valuation allowances and discontinued operations. Based on the current environment, HP anticipates generating free cash flow of at least $3.0 billion for fiscal 2018.

HP expects to return 50%-75% of annual free cash flow to shareholders. In fiscal 2018, the company indicated that it expects to be towards the higher end of that range, with a 5% increase in the planned quarterly dividend amount, and the balance returned to shareholders through share repurchases.

HP has been building strong business momentum, demonstrating our strategy is working. said Cathie Lesjak, Chief Financial Officer. We expect to continue our momentum in fiscal 2018. We have shown that we can deliver in the short-term, while also positioning ourselves for long-term success.

Webcast details

A webcast of today's event, along with management presentations and other materials, is available at www.hp.com/investor/SAM2017. 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.

Forward-looking statements

Today's presentations contain 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 Inc. and its consolidated subsidiaries ( 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 statements that could be deemed forward-looking statements, including but not limited to any projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of restructuring plans and any resulting cost savings, net revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief, including with respect to the timing and expected benefits of acquisitions and other business combinations and investment transactions; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing HP's businesses; the competitive pressures faced by HP's businesses; risks associated with executing HP's strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP's products and the delivery of HP's services effectively; the protection of HP's intellectual property assets, including intellectual property licensed from third parties; risks associated with HP's international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and partners; the hiring and retention of key employees; integration and other risks

LINK:	http://www8.hp.com/us/en/hp-news/press-release.html?id=2523379...
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