By Maria Armental
HP Inc. reported second-quarter results on Wednesday and gave third-quarter guidance but pulled financial projections for the year, citing uncertainty about the business impact of the coronavirus pandemic. Here's what you need to know:
PROFIT: Net income fell to $764 million, or 53 cents a share, from $782 million, or 51 cents a share. The latest results included 6% fewer shares outstanding.
On an adjusted basis, profit fell to 51 cents a share from 53 cents a share a year earlier.
HP had projected 46 cents to 50 cents a share, or 49 cents to 53 cents a share as adjusted, while analysts surveyed by FactSet expected a profit of 43 cents a share, or 44 cents as adjusted.
REVENUE: Net revenue fell to $12.47 billion from $14.04 billion a year earlier, driven by a 19% decline from printing. Analysts expected sales to fall to about $12.93 billion.
OUTLOOK: HP pulled financial projections for the year, citing uncertainty about the business impact of the pandemic, but said that this quarter it expects to make 35 cents to 41 cents a share, or 39 cents to 45 cents a share on an adjusted basis. That compares with analysts' projected 47 cents a share.
PANDEMIC: HP said its supply chain returned to full capacity in early May and that it ended the April quarter with a strong PC backlog.
BUYBACK: HP, which at the time faced a hostile takeover bid from Xerox Holdings Corp., had raised its share buyback program to $15 billion, targeting at least $8 billion in the first year, and increased its target long-term return of capital to 100% of free cash flow, "unless higher return opportunities emerge." HP said it would maintain dividend per share growth at least in line with earnings. On Wednesday, company officials said they remained committed to the principles HP discussed in February. Company officials are expected to give more detail during the earnings call.
CASH & DEBT: HP ended the quarter with about $4.05 billion in cash, compared with $4.21 billion as of Jan. 31, and about $5.5 billion in debt.
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