NYSE$HPQ

Hewlett Packard · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong Q3 results, reflecting the agility of their teams and the strength of their portfolio.

HP Inc. reported fiscal 2020 third quarter results with net revenue of $14.3 billion, a decrease of 2.1% year-over-year. GAAP diluted net EPS was $0.52, and non-GAAP diluted net EPS was $0.49. The company generated $1.6 billion in free cash flow and returned $1.2 billion to shareholders through share repurchases and dividends.

  • Third quarter GAAP diluted net earnings per share ("EPS") of $0.52, above the previously provided outlook of $0.35 to $0.41 per share
  • Third quarter non-GAAP diluted net EPS of $0.49, above the previously provided outlook of $0.39 to $0.45 per share
  • Third quarter net revenue of $14.3 billion, down 2.1% from the prior-year period
  • Third quarter net cash from operating activities of $1.7 billion, free cash flow of $1.6 billion

Headline financials

Total Revenue

$14.3B

Previous: $14.6B-2.1%
EPS (adj)

$0.49

Previous: $0.58-15.5%
GAAP Operating Margin

5.4%

Previous: 7.4%-27.0%
Dividend Per Share

$0.18

No prior period
Free Cash Flow

$1.6B

No prior period
Net Income

$734M

Previous: $1.18B-37.7%
Operating Income

$779M

Previous: $1.08B-27.8%
Gross Profit

$2.39B

Previous: $2.91B-17.6%
Cash & Equivalents

$4.68B

Previous: $4.92B-4.9%
Total Assets

$34.2B

Previous: $32.4B+5.7%
Stock-Based Comp

$49M

Previous: $60M-18.3%

Revenue & EPS history

HP · Revenue · Quarterly

$14.3B

Q3 2020-2.1%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

HP · $27.6B total across 7 segments · Q4 2023

  • Personal Systems
    $9.4B-8.5%
  • Commercial PS
    $6.21B
  • Printing
    $4.42B-2.5%
  • Consumer PS
    $3.19B
  • Supplies
    $2.82B+2.7%
  • Commercial Printing
    $1.06B
  • Consumer Printing
    $533M

Forward guidance

For the fiscal 2020 fourth quarter, HP estimates GAAP diluted net EPS to be in the range of $0.32 to $0.36 and non-GAAP diluted net EPS to be in the range of $0.50 to $0.54. HP also estimates fiscal 2020 free cash flow to be in the range of $2.5 to $3.0 billion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

-2.0%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+17.8%

Q2 2013

Best reaction

-17.4%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.1%+7.9%
Q1 2026+0.9%+2.7%+6.8%
Q4 2025+3.0%+0.3%-4.4%
Q3 2025+4.3%+6.8%-1.5%
Q2 2025-8.9%-6.7%-8.9%
Q1 2025+0.1%+1.8%-6.2%
Q4 2024-11.8%-9.8%-14.9%
Q3 2024-0.4%+1.6%-0.5%
Q2 2024+15.8%+6.6%+5.7%
Q1 2024-1.7%+0.8%+4.8%
Q4 2023+2.4%+2.3%+7.7%
Q3 2023-6.5%-3.1%-18.4%
Q2 2023-7.2%-2.4%-3.1%
Q1 2023-1.8%-2.7%-1.7%
Q4 2022+2.6%+0.4%-10.5%
Q3 2022-8.9%-12.3%-20.6%
Q2 2022+4.1%+2.7%-15.4%
Q1 2022-1.1%+5.5%+12.7%
Q4 2021+11.0%+8.3%+17.9%
Q3 2021-1.6%+1.2%-5.1%
Q2 2021-9.1%-7.2%-7.6%
Q1 2021+3.6%+7.4%+13.2%
Q4 2020+5.0%+5.1%+14.5%
Q3 2020+8.3%+5.1%-0.2%
Q2 2020-12.0%-11.3%-2.6%
Q1 2020+2.9%-8.4%-32.2%
Q4 2019-1.8%-0.3%+2.7%
Q3 2019-6.1%-6.5%-2.6%
Q2 2019+4.3%+2.4%+7.8%
Q1 2019-17.4%-18.3%-18.7%
Q4 2018-1.8%-0.8%-13.2%
Q3 2018-1.4%+0.0%+5.5%
Q2 2018+1.1%+3.5%+3.5%
Q1 2018+4.5%+11.1%+3.2%
Q4 2017-3.5%-4.0%-3.9%
Q3 2017+2.1%+0.8%+4.8%
Q2 2017-3.1%-2.6%-6.1%
Q1 2017+9.1%+9.4%+6.8%
Q4 2016-7.1%-5.1%-5.4%
Q3 2016-1.4%-1.0%+3.6%
Q2 2016+9.5%+10.6%+2.9%
Q1 2016+0.3%
Q4 2015-11.2%
Q3 2015-1.0%
Q2 2015+5.1%
Q1 2015-9.2%
Q4 2014+4.4%
Q3 2014+4.3%
Q2 2014+3.7%
Q1 2014+1.1%
Q4 2013+8.0%
Q3 2013-14.0%
Q2 2013+17.8%
Q1 2013+15.0%
Q4 2011-3.1%
Q4 2012-10.3%
Q3 2012-11.5%
Q2 2012-0.1%
Q1 2012-7.9%
Q3 2011-5.4%
Q2 2011-0.3%
Q1 2011+2.2%
Q4 2010+1.0%
Q3 2010-1.4%
Q2 2010+0.4%
Q1 2009+1.1%
Q1 2010+1.6%
Q4 2009+0.3%
Q4 2007+0.3%
Q2 2009+0.3%
Q4 2008+2.0%
Q3 2009+2.0%
Q3 2008+2.0%

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