HP Inc. (HPQ) FY22 EPS Tops Expectations, Raises Annual Dividend Approximately 29%

Today at HP’s (NYSE: HPQ) 2021 Securities Analyst Meeting (“SAM”), the company reiterated its fiscal 2021 financial outlook provided at Q3 2021 earnings, and provided details on its strategy and opportunities for long-term growth, along with its financial outlook for fiscal 2022.

• HP inc. (“HP”) reiterates fiscal 2021 financial outlook provided at Q3 2021 earnings
• Estimates GAAP diluted net earnings per share (“EPS”) for fiscal 2022 of $3.86 to $4.06
• Estimates non-GAAP diluted net EPS for fiscal 2022 of $4.07 to $4.27
• Estimates fiscal 2022 free cash flow of at least $4.5 billion
• Expects to return at least 100% of fiscal 2022 free cash flow to shareholders through dividends and share repurchases
• HP announces annual dividend increase of approximately 29% to $1 per share

(Consensus sees FY22 EPS of $3.78)

“We continue to build a stronger HP. We have delivered exceptional financial performance since our last investor day in 2019 – and we are confident in our plans to deliver sustained revenue, operating profit, EPS and free cash flow growth,” said Enrique Lores, President and Chief Executive Officer, HP Inc. “We are strengthening our core business, building a more growth-oriented portfolio, and creating a more digital company to meet changing customer needs and capitalize on secular trends across our categories.”

Fiscal 2022 outlook

For fiscal 2022, the company estimates GAAP diluted net EPS to be in the range of $3.86 to $4.06 and estimates non-GAAP diluted net EPS to be in the range of $4.07 to $4.27. Fiscal 2022 non-GAAP diluted net EPS estimates exclude $0.21 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

Based on the current environment, HP anticipates generating free cash flow of at least $4.5 billion for fiscal 2022.

For fiscal 2022, the company indicated that it expects to return at least 100% of free cash flow through dividends and share repurchases. The HP Board of Directors has approved an increase to the planned annual dividend amount to $1.00 per share, reflecting an approximately 29% increase from the prior dividend. The balance is expected to be returned to shareholders through share repurchases.

“This is a record 29 percent increase in our annual dividend, underscoring our confidence in our ability to grow earnings and free cash flow in fiscal 2022 and beyond,” said Marie Myers, Chief Financial Officer. “We remain deeply committed to aggressively returning capital to shareholders while also investing in attractive opportunities we see to drive profitable growth and long-term value creation.”

Webcast details

A webcast of today’s event, along with management presentations and other materials, is available at https://investor.hp.com/events/event-details/2021/HP-Securities-Analyst-Meeting/default.aspx. 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.

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