HP Inc. (HPQ) expects non-GAAP net earnings per share for fiscal 2024 to be in line with average estimation of Analysts. The company announced annual dividend increase of 5%. It expects to return about 100% of fiscal 2024 free cash flow to shareholders through dividends and share repurchases. The company estimates $200 million increase in Future Ready plan annualized gross run rate structural cost savings, to $1.6 billion by the end of fiscal 2025.
HPQ closed Tuesday regular trading at $26.43 up $0.35 or 1.34%. In the after-hours trade, the stock further gained $0.25 or 0.95%.
At HP’s 2023 Securities Analyst Meeting, the company said it estimates net earnings per share to be in the range of $2.75 to $3.15 and estimates non-GAAP net earnings per share to be in the range of $3.25 to $3.65 for fiscal 2024. Analysts polled by Thomson Reuters expect the company to report earnings of $3.47 per share for fiscal 2024. Analysts’ estimates typically exclude special items.
The company also expects a $200 million increase in its Future Ready plan annualized gross run rate structural cost savings, to $1.6 billion by the end of fiscal 2025, with no change to estimated restructuring and other charges of approximately $1.0 billion.
HP anticipates generating free cash flow of $3.1 billion to $3.6 billion for fiscal 2024.
For fiscal 2024, the company expects to return about 100% of free cash flow through dividends and share repurchases.
HP noted that its board has approved an increase to the planned annual dividend amount to $1.1024 per share, reflecting a 5% increase from the prior dividend. The balance is expected to be returned to shareholders through share repurchases.
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