Q4 2024 HP Inc Earnings Call Transcript
Key Points
- HP Inc (HPQ) reported a 2% year-over-year revenue increase for the second consecutive quarter, driven by strong performance in both personal systems and print.
- The company achieved a 3% growth in non-GAAP EPS, reaching $0.93, which was in line with their outlook.
- HP Inc (HPQ) showcased significant innovation, particularly in AI-powered capabilities, with new product launches like the EliteBook X and OmniBook Ultra Flip.
- The company gained market share in high-value categories, including commercial and consumer premium PCs, and maintained the number one market share in AI PCs within the Windows ecosystem.
- HP Inc (HPQ) returned nearly 100% of its free cash flow to shareholders, demonstrating a strong commitment to shareholder returns.
- HP Inc (HPQ) faced continued pressure from rising commodity costs, impacting operating profit margins.
- The company anticipates a decline in the print market by low single digits in fiscal year 2025.
- Despite cost optimizations, the expected growth in free cash flow for the next year is only projected to be in line with earnings, not materially higher.
- The competitive pricing environment in the print segment remains challenging, particularly from Japanese competitors benefiting from a weaker yen.
- HP Inc (HPQ) expects the first quarter EPS to be lower than typical seasonality, driven by stock compensation expenses and seasonal volume declines.
Good day, everyone, and welcome to the fourth-quarter 2024 HP Inc. conference call. My name is Lisa, 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 fourth-quarter 2024 earnings conference call. With me today are Enrique Lores, HP's President and Chief Executive Officer; and Karen Parkhill, HP's 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 our investor relations web page at investor.hp.com.
As always, elements of this presentation are forward-looking and are based on our best view of the world
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