HP Announces Fiscal 2016 Financial Outlook for HP Inc.

SAN JOSE, CA--(Marketwired - Sep 15, 2015) - HP (NYSE: HPQ)

• Estimates non-GAAP diluted EPS outlook for fiscal 2016 of $1.67 to $1.77 and GAAP diluted EPS for fiscal 2016 of $1.55 to $1.65
• Estimates fiscal 2016 free cash flow of $2.5 to $2.8 billion
• Expects to return up to 75% of fiscal 2016 annual free cash flow to shareholders through dividends and share repurchases

Today at HP's (NYSE: HPQ) 2015 Securities Analysts Meeting, the future HP Inc. leadership team provided details on the strategy for the company and opportunities for long-term growth, coupled with the financial outlook for the new company.

Dion Weisler, who will become President and CEO for HP Inc., noted, "I am honored to be leading this company at an exciting time. We're building a company with the heart and energy of a startup and the brains and muscle of a Fortune 100 corporation."

Weisler laid out the strategy for how HP Inc. will maintain its leading position in Printing and Personal Systems, and outlined the factors that make the new company a compelling investment opportunity. In particular, HP Inc. has:

• A focus on growing profitable share;
• Recurring profit streams and strong cash flows;
• Meticulous focus on cost and operating efficiencies;
• Prudent capital allocation and commitment to shareholder returns;
• And, commitment to investing for the future.
  
  

"Executing on our strategy will produce reliable returns and cash flows while also having the opportunity for long-term growth," Weisler continued. "The separation enables us to focus our company assets and financial resources on our core businesses, growth opportunities and future while also being very disciplined about delivering long-term, shareholder value."

Weisler then went on to acknowledge the challenging market environment and currency headwinds, but emphasized that HP Inc. business fundamentals are strong, and the team has a proven track record of execution. He outlined pockets of growth and new markets that HP Inc. will pursue to drive growth, including graphics, the A3 copier market, commercial mobility, and 3D printing.

Fiscal 2016 outlook
Cathie Lesjak, who will become the Chief Financial Officer of HP Inc., provided the financial outlook for the new company in fiscal 2016. Lesjak acknowledged that markets are likely to remain tough for the next several quarters with continued competitive pricing in printing and soft demand in PCs. To offset these challenges, HP Inc.'s strategy will be to protect the core while focusing on accelerating in key areas, including: business printing, graphics, commercial mobility, and services.