HP Inc. (NYSE: HPQ) shares make a handy gain on Friday after the firm issued guidance for fiscal 2018. In fact, shares hit a new multiyear high to close out the week, not seen since 2010 (after adjusting for the split-up with Hewlett Packard Enterprise in 2015). The 2017 fiscal fourth quarter is almost done for HP, and the company is looking to report in November. Although it said what we should expect in the coming year, it did not update what to expect for the fourth quarter.
In terms of the coming quarter, the consensus estimates are $0.44 in earnings per share (EPS) and $13.33 billion in revenue. HP previously guided that EPS would be in the range of $0.42 to $0.45 for the quarter.
Looking ahead to fiscal 2018, the company estimates GAAP diluted net EPS from continuing operations to be in the range of $1.69 to $1.79 and estimates non-GAAP diluted net EPS to be in the range of $1.74 to $1.84. The Thomson Reuters consensus estimates are $1.76 in EPS and $51.78 billion in revenue for fiscal 2018.
At the same time, HP expects to return 50% to 75% of annual free cash flow to shareholders. In fiscal 2018, the company indicated that it expects to be toward the higher end of that range, with a 5% increase in the planned quarterly dividend amount, and the balance returned to shareholders through share repurchases.
Dion Weisler, president and CEO of HP, commented:
Fiscal 2017 has been a tremendous year for HP and we are just getting started. We’ve delivered reliable earnings and cash flow, taken profitable share, driven productivity, stabilized our core businesses, and importantly, we grew. We are well positioned to lead in the core, accelerate growth opportunities, like A3 and Graphics in Printing and commercial transformation in Personal Systems, and capture the future with 3D Printing in plastics and now metals.
Shares of HP were last seen up about 7% at $21.85, with a consensus analyst price target of $21.81 and a 52-week range of $13.77 to $21.78.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
