HP Inc (NYSE:HPQ) reported better-than-expected earnings for its first quarter and issued strong FY20 earnings.
The Palo Alto, Calif.-based HP reported first-quarter GAAP diluted net EPS was $0.46, down from $0.51 in the prior-year period and above the previously provided outlook of $0.39 to $0.42. First quarter non-GAAP diluted net EPS was $0.65, up from $0.52 in the prior-year period and above the previously provided outlook of $0.53 to $0.56.
First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $278 million, or $0.19 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, and tax adjustments.
HP’s net cash provided by operating activities in the first quarter of fiscal 2020 was $1.3 billion. Accounts receivable ended the quarter at $4.9 billion, down 5-days quarter over quarter to 30 days. Inventory ended the quarter at $4.9 billion, down 3-days quarter over quarter to 38 days. Accounts payable ended the quarter at $12.8 billion, down 9 days quarter over quarter to 98 days.
According to CEO Enrique Lores, "Our Q1 results reflect a business that is strong and getting stronger. Our non-GAAP EPS growth of 25% was significantly above our guided range, driven by tremendous execution against our strategic priorities."
The company also announced a $15-billion buyback program and also called the Xerox proposal a "flawed value exchange, irresponsible capital structure, overstated synergies."
Shares acquired 84 cents, or 3.8%, to $22.98
