Q3 2024 HP Inc Earnings Call Transcript
Key Points
- HP Inc (HPQ) returned to revenue growth for the first time in nine quarters, with a 2% year-over-year increase.
- Strong performance in the personal systems segment, with revenue up 5% year over year.
- Introduction of next-gen AI PCs, which are expected to drive higher average selling prices and premium mix.
- Significant progress in key growth areas, including personal systems services and hybrid systems.
- Strong free cash flow generation of $1.3 billion in the quarter, with $0.9 billion returned to shareholders.
- Non-GAAP operating profit was down 7% year over year.
- Print market recovery was slower than expected, impacting print revenue.
- Aggressive pricing environment and unfavorable geographic mix, particularly in China, pressured print margins.
- Continued softness in the consumer PC market, leading to less seasonal growth than historically seen.
- Competitive pricing pressures from Japanese competitors benefiting from a weaker yen.
Good day, everyone, and welcome to the third-quarter 2024 HP Inc earnings conference call. My name is Tesere and I'll be your conference moderator for today's call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Orit Keinan-Nahon, Head of Investor Relations. Please go ahead.
Good afternoon, everyone, and welcome to HP's third-quarter 2024 earnings conference call. With me today are Enrique Lores, HP's President and Chief Executive Officer; Karen Parkhill, HP's Chief Financial Officer; and Tim Brown, who is the Interim Chief Financial Officer.
Before handing the call over to Enrique, let me remind you that this call is a webcast and a replay will be available on our website shortly after the call for approximately one year. We posted the earnings release and accompanying slide presentation on our Investor Relations webpage at investor.hp.com.
As always, elements of this presentation are forward-looking and
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