[ACCESSWIRE]
Upcoming AWS Coverage on Diebold Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 2, 2016 / Active Wall St. announces its post-earnings coverage on HP Inc. (NYSE: HPQ) ("HP"). The company reported its fourth quarter fiscal 2016 financial results on November 22, 2016. The PC and printer maker reported earnings per share that was in-line with consensus on better-than-expected sales. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of HP Inc.'s competitors within the Diversified Computer Systems space, Diebold Inc. (NYSE: DBD), reported on November 15, 2016, its 2016 third quarter financial results. AWS will be initiating a research report on Diebold in the coming days.
Today, AWS is promoting its earnings coverage on HPQ; touching on DBD. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=HPQ
http://www.activewallst.com/registration-3/?symbol=DBD
Earnings Reviewed
For the three months ended on October 31, 2016, HP reported net revenue of $12.5 billion, up 2%, or up 4% in a constant currency, from the year ago comparable period. The revenue numbers handily topped Wall Street's expectation of $11.9 billion.
The company posted Q4 FY16 GAAP diluted net earnings per share (EPS) from continuing operations of $0.30, down from $0.83 in the prior year's same period and above the previously provided outlook of $0.22 to $0.25 per share. Excluding after-tax adjustments of $101 million, or $0.06 per share, related to defined benefit plan settlement charges, acquisition and other related charges, restructuring, and other charges, non-operating retirement-related charges/(credits) and net tax indemnification amounts, the company reported diluted net EPS of $0.36, up from $0.30 per share in the prior year's comparable period and within the previously provided outlook of $0.34 to $0.37 per share. The earnings result matched analysts' expectations of $0.36 per share.
For FY16, HP reported net revenue of $48.2 billion, down 6% (down 2% in a constant currency basis) from the prior year's same period. For FY16, the company's GAAP diluted net EPS from continuing operations was $1.53, down from $2.02 in the prior year's same period and above the previously provided outlook of $1.46 to $1.49 per share. On an adjusted basis, the company reported net EPS of $1.60, up from $1.46 in the prior year's same period and within the previously provided outlook of $1.59 to $1.62 per share.
Segment Results
During Q4 FY16, HP's Personal Systems' sales increased 4% on a y-o-y basis, (up 5% in a constant currency basis) with a 4.3% operating margin. The segment's Commercial net revenue increased 3% and Consumer net revenue increased 7% compared to Q4 FY15. During the reported quarter, total units were up 5% with Notebooks units up 9% and Desktops units up 1%.
During Q4 FY16, HP's printing net revenue declined 8% on a y-o-y basis (down 6% in a constant currency basis) with an operating margin of 14.0%. Total hardware units were up 1% from the prior year's comparable period, with Commercial hardware units up 10% and Consumer hardware units down 3%. Supplies net revenue was down 12% (down 10% a in constant currency basis).
Balance Sheet
HP's net cash provided by operating activities in Q4 FY16 was $0.7 billion. Accounts receivable ended the quarter at $4.1 billion, unchanged from Q3 FY16 at 30 days. The company's Inventory at the end of Q4 FY16 was $4.5 billion, up 2 days on a q-o-q basis to 39 days. Accounts payable ended the reported quarter at $11.1 billion, up 2 days from Q3 FY16 to 98 days.
HP's dividend payment of $0.124 per share in Q4 FY16 resulted in cash usage of $0.2 billion. HP also utilized $2 million of cash to settle the repurchase of approximately 0.2 million shares of common stock in the open market, during the quarter. The Company exited the quarter with $6.3 billion in gross cash, which includes cash and cash equivalents, short-term investments, and certain liquid long-term investments. During FY16, HP generated $3.2 billion in net cash provided by operating activities and $2.8 billion of free cash flow. The company utilized approximately $1.2 billion of cash, during FY16, to repurchase approximately 100 million shares of common stock in the open market.
Earnings Outlook
For Q1 FY17, HP forecasts GAAP diluted net EPS from continuing operations to be in the range of $0.33 to $0.36 and non-GAAP diluted net EPS to be in the range of $0.35 to $0.38. For FY16, the company is expecting GAAP diluted net EPS from continuing operations to be in the range of $1.47 to $1.57 and non-GAAP diluted net EPS to be in the range of $1.55 to $1.65.
Stock Performance
HP Inc.'s share price finished yesterday's trading session at $15.06, declining 2.21%. A total volume of 12.82 million shares exchanged hands, which was higher than the 3 months average volume of 12.25 million shares. The stock has advanced 14.10% and 31.08% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have soared 30.97%. The stock is trading at a PE ratio of 9.84 and has a dividend yield of 3.53%.
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SOURCE: Active Wall Street
