Upcoming AWS Coverage on Diebold Nixdorf Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 10, 2017 / Active Wall St. announces its post-earnings coverage on HP Inc. (NYSE: HPQ). The Company posted its first quarter fiscal 2017 financial results on February 22, 2017. The personal computer and printer maker outperformed top- and bottom-line expectations. Moreover, the Company returned $613 million to stockholders during the reported quarter. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of HP Inc.'s competitors within the Diversified Computer Systems space, Diebold Nixdorf Inc. (NYSE: DBD), reported its 2016 fourth quarter and full year financial results on February 14, 2017. AWS will be initiating a research report on Diebold Nixdorf in the coming days.

Today, AWS is promoting its earnings coverage on HPQ; touching on DBD. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended January 31st, 2017, HP announced net revenue of $12.68 billion, up 4% or 5% in constant currency from the prior-year same period net revenue of $12.2 billion. The Company's reported numbers smashed past analysts' consensus of $11.77 billion.

HP's Q1 FY17 GAAP diluted net earnings per share ("EPS") from continuing operations was $0.36, flat from the prior year comparable period and within the previously provided outlook of $0.33 to $0.36. The Company's Q1 FY17 non-GAAP diluted net EPS was $0.38, up from $0.36 in the prior year corresponding period and within the previously provided outlook of $0.35 to $0.38. First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $35 million, or $0.02 per share, related to restructuring and other charges, acquisition-related charges, non-operating retirement-related credits / (charges), and net tax indemnifications. HP's non-GAAP EPS surpassed market expectations of $0.37 per share.

Segment results

During Q1 FY17, HP's Personal Systems net revenue was up 10% y-o-y, or 11% in constant currency, to $8.22 billion with a 3.8% operating margin. Commercial net revenue increased 7% and Consumer net revenue increased 15%. Total units were up 8% with Notebooks units up 12% and Desktops units flat.

The Company's Printing net revenue declined 3% on a y-o-y basis, or 2% in constant currency, to $4.48 billion with a 16.0% operating margin. Total hardware units were up 6% with Commercial hardware units up 2% and Consumer hardware units up 7%. Supplies net revenue was down 3% (down 2% in constant currency).

Asset management

HP's receivable ended the reported quarter at $3.5 billion, down 5 days q-o-q to 25 days. Inventory ended the quarter at $4.6 billion, unchanged q-o-q at 39 days. Accounts payable ended the quarter at $11.0 billion, down 4 days compared to Q3 2016 to 94 days. HP's dividend payment of $0.1327 per share in Q1 FY17 resulted in cash usage of $0.2 billion. HP also utilized $0.4 billion of cash during the reported quarter to repurchase approximately 25.5 million shares of common stock in the open market.

HP exited the quarter with $6.3 billion in gross cash, which includes cash and cash equivalents, short-term investments, and certain liquid long-term investments.

HP's cash flow from operations was $767 million, and free cash flow was $735 million. Free cash flow was better than the Company's expectation, due to the very strong performance of personal systems, and the material improvement in linearity in the quarter. During the reported quarter, HP had a total capital return of $613 million through share repurchases and cash dividends, which was 83% of free cash flow as compared to its full year target of 50% to 75%.

Outlook

For Q2 FY17, HP estimates GAAP diluted net EPS from continuing operations to be in the range of $0.32 to $0.35 and non-GAAP diluted net EPS to be in the range of $0.37 to $0.40.

Stock Performance

On Thursday, March 09, 2017, the stock closed the trading session at $17.36, slightly up by 0.23% from its previous closing price of $17.32. A total volume of 8.51 million shares have exchanged hands. HP Inc.'s stock price rallied 13.38% in the last month, 13.09% in the past three months, and 21.17% in the previous six months. Furthermore, since the start of the year, shares of the Company have surged 17.88%. The stock is trading at a PE ratio of 11.41 and has a dividend yield of 3.05%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street