=HP (HPQ) reported earnings on Wed 27 Feb 19 (a/h)

HP reports EPS in-line, revs in-line; guides Q2 EPS in-line; reaffirms FY19 EPS guidance

• Reports Q1 (Jan) earnings of $0.52 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $0.52; revenues rose 1.3% year/year to $14.71 bln vs the $14.81 bln S&P Capital IQ Consensus.
  • Personal Systems net revenue was up 2% year over year (up 3% in constant currency) with a 4.2% operating margin. Commercial net revenue increased 3% and Consumer net revenue increased 1%. Total units were down 3% with Notebooks units down 1% and Desktops units down 8%.
  • Printing net revenue was mostly flat year over year (down 0.7% in constant currency) with a 16.2% operating margin. Total hardware units were up 3% with Commercial hardware units up 4% and Consumer hardware units up 2%. Supplies net revenue was down 3% (down 3% in constant currency).
• Co issues in-line guidance for Q2, sees EPS of $0.50-0.53, excluding non-recurring items, vs. $0.53 S&P Capital IQ Consensus.
  • Fiscal 2019 second quarter non-GAAP diluted net EPS estimates exclude $0.05 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related credits/(charges), tax adjustments and the related tax impact on these items.
• Co reaffirms guidance for FY19, sees EPS of $2.12-2.22, excluding non-recurring items, vs. $2.20 S&P Capital IQ Consensus.
  • 2019 non-GAAP diluted net EPS estimates exclude $0.12 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related credits/(charges), tax adjustments and the related tax impact on these items. HP also reaffirms its previous estimate for fiscal 2019 free cash flow of at least $3.7 billion.