HP Inc. Reports Q1 2024 Results

TL;DR

<b>HP Inc. reported a 4% year-over-year decline in net revenue to $13.2 billion for Q1 2024, with Personal Systems revenue down 7%.</b>

AI Summary

HP INC (HPQ) filed a Quarterly Report (10-Q) with the SEC on February 28, 2024. Total net revenue for Q1 2024 was $13.2 billion, a 4% decrease year-over-year. Net revenue from Personal Systems decreased 7% to $8.8 billion. Net revenue from Printing decreased 1% to $4.4 billion. The company reported diluted earnings per share of $0.76 for Q1 2024. Cash flow from operations was $1.1 billion for the quarter.

Why It Matters

For investors and stakeholders tracking HP INC, this filing contains several important signals. The decline in revenue, particularly in the Personal Systems segment, indicates ongoing challenges in the PC market and may impact future growth prospects. While Printing revenue saw a slight decrease, its relative stability compared to Personal Systems could suggest a more resilient business segment.

Risk Assessment

Risk Level: medium — HP INC shows moderate risk based on this filing. The company's revenue continues to decline year-over-year, with a significant drop in the Personal Systems segment, suggesting potential market saturation or reduced consumer/business spending on hardware.

Analyst Insight

Investors should monitor HP's strategies for revitalizing its Personal Systems segment and explore opportunities for growth in its Printing division.

Financial Highlights

revenue

13.2

eps

0.76

revenue Growth

-4%

Revenue Breakdown

Key Numbers

• 13.2 — Total Net Revenue (Q1 2024)
• 4% — Year-over-year Revenue Change (Q1 2024)
• 8.8 — Personal Systems Net Revenue (Q1 2024)
• 7% — Personal Systems Revenue Change (Q1 2024)
• 4.4 — Printing Net Revenue (Q1 2024)
• 1% — Printing Revenue Change (Q1 2024)
• 0.76 — Diluted Earnings Per Share (Q1 2024)
• 1.1 — Cash Flow from Operations (Q1 2024)

Key Players & Entities

• HP Inc. (company) — Filer
• 1501 PAGE MILL ROAD (address) — Business Address
• PALO ALTO (city) — Business Address
• CA (state) — Business Address
• 94304 (zip_code) — Business Address
• HEWLETT PACKARD CO (company) — Former Company Name

FAQ

Key Dates

• 2024-01-31: Quarter End — Reporting period for the 10-Q filing.
• 2024-02-28: Filing Date — Date the 10-Q was submitted to the SEC.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share HPQ New York Stock Exchange

Filing Documents

• hpq-20240131.htm (10-Q) — 1871KB
• hpq-standardrsuagreementfy.htm (EX-10.(F)(F)(F)(F)) — 83KB
• hpq-retentionrsuagreementf.htm (EX-10.(G)(G)(G)(G)) — 83KB
• hpq-standardnqsoagreementf.htm (EX-10.(H)(H)(H)(H)) — 72KB
• hpq-retentionnqsoagreement.htm (EX-10.(I)(I)(I)(I)) — 72KB
• hpq-fy24parsuagreementjanu.htm (EX-10.(J)(J)(J)(J)) — 114KB
• hpq-standardpolyrsuagreeme.htm (EX-10.(K)(K)(K)(K)) — 84KB
• hpq-retentionpolyrsuagreem.htm (EX-10.(L)(L)(L)(L)) — 83KB
• hp-13124xexhibit311q124.htm (EX-31.1) — 9KB
• hp-13124xexhibit312q124.htm (EX-31.2) — 10KB
• hp-13124xexhibit32q124.htm (EX-32) — 10KB
• image_0.jpg (GRAPHIC) — 8KB
• image_02.jpg (GRAPHIC) — 8KB
• image_03.jpg (GRAPHIC) — 8KB
• image_05.jpg (GRAPHIC) — 8KB
• image_06.jpg (GRAPHIC) — 8KB
• image_0a.jpg (GRAPHIC) — 8KB
• image_0b.jpg (GRAPHIC) — 8KB
• 0000047217-24-000024.txt (&nbsp;) — 11294KB
• hpq-20240131.xsd (EX-101.SCH) — 70KB
• hpq-20240131_cal.xml (EX-101.CAL) — 118KB
• hpq-20240131_def.xml (EX-101.DEF) — 288KB
• hpq-20240131_lab.xml (EX-101.LAB) — 876KB
• hpq-20240131_pre.xml (EX-101.PRE) — 556KB
• hpq-20240131_htm.xml (XML) — 1886KB

Financial Information

Part I. Financial Information UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2024 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-4423 _________________________________________ HP INC. (Exact name of registrant as specified in its charter) Delaware 94-1081436 (State or other jurisdiction of incorporation or organization) (I.R.S. employer identification no.) 1501 Page Mill Road 94304 Palo Alto, California (Zip code) (Address of principal executive offices) ( 650 ) 857-1501 (Registrant's telephone number, including area code) _______________________________________ Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.01 per share HPQ New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, o

Forward-Looking Statements

Forward-Looking Statements 3

Financial Information

Part I. Financial Information Item 1.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 4.

Controls and Procedures

Controls and Procedures 49

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 51 Item 3. Defaults Upon Senior Securities 51 Item 4. Mine Safety Disclosures 51 Item 5. Other Information 51 Item 6. Exhibits 51 Exhibit Index 52 Signature 60 In this report on Form 10-Q, for all periods presented, "we", "us", "our", the "company", the "Company", "HP" and "HP Inc." refer to HP Inc. (formerly Hewlett-Packard Company) and its consolidated subsidiaries. 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I, contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries ("HP") which may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, any statements regarding the impact of the COVID-19 pandemic; projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings (including the Fiscal 2023 Plan (as defined below)), net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logistics challenges; any statements regarding current or future macroeconomic trends or events and the impact of those tre

Financial Information

Part I. Financial Information

Financial Statements and Supplementary Data

ITEM 1. Financial Statements and Supplementary Data. Index Page Consolidated Condensed Statements of Earnings for the three months ended January 3 1 , 202 4 and 202 3 (Unaudited) 6 Consolidated Condensed Statements of Comprehensive Income for the three months ended January 3 1 , 202 4 and 202 3 (Unaudited) 7 Consolidated Condensed Balance Sheets as of January 3 1 , 202 4 and October 31, 202 3 (Unaudited) 8 Consolidated Condensed Statements of Cash Flows for the three months ended January 3 1 , 202 4 and 202 3 (Unaudited) 9 Consolidated Condensed Statements of Stockholders' Deficit (Unaudited) 10 Notes to Consolidated Condensed Financial Statements (Unaudited) 11 Note 1: Basis of Presentation 11 Note 2: Segment Information 12 Note 3: Restructuring and Other Charges 14 Note 4: Retirement and Post-Retirement Benefit Plans 15 Note 5: Taxes on Earnings 16 Note 6: Supplementary Financial Information 17 Note 7: Fair Value 21 Note 8: Financial Instruments 23 Note 9: Borrowings 28 Note 10: Stockholders' Deficit 30 Note 11: Earnings Per Share 32 Note 12: Litigation and Contingencies 32 Note 13: Guarantees, Indemnifications and Warranties 37 5 Table of Contents HP INC. AND SUBSIDIARIES Consolidated Condensed Statements of Earnings (Unaudited) Three months ended January 31 2024 2023 In millions, except per share amounts Net revenue: Products $ 12,419 $ 13,044 Services 766 754 Total net revenue 13,185 13,798 Cost of net revenue: Products 9,871 10,589 Services 426 422 Total cost of net revenue 10,297 11,011 Gross margin 2,888 2,787 Research and development 399 403 Selling, general and administrative 1,383 1,331 Restructuring and other charges 63 141 Acquisition and divestiture charges 27 84 Amortization of intangible assets 81 85 Total operating expenses 1,953 2,044 Earnings from operations 935 743 Interest and other, net ( 142 ) ( 181 ) Earnings before taxes 793 562 Provision for taxes (

View Full Filing

View this 10-Q filing on SEC EDGAR