· Third quarter net revenue of $25.3 billion
· Third quarter non-GAAP diluted net earnings per share of $0.88, versus the previously provided outlook of $0.83 to $0.87 per share
· Third quarter GAAP diluted net earnings per share of $0.47, versus the previously provided outlook of $0.50 to $0.54 per share
· Third quarter cash flow from operations of $1.7 billion
· Returned $670 million to shareholders in the form of share repurchases and dividends in the third quarter
HP fiscal 2015 third quarter financial performance
|
|
|
Q3 FY15 |
|
Q3 FY14 |
|
Y/Y |
|
GAAP net revenue ($B) |
|
$25.3 |
|
$27.6 |
|
(8%) |
|
GAAP operating margin |
|
4.8% |
|
5.3% |
|
(0.5 pts.) |
|
GAAP net earnings ($B) |
|
$0.9 |
|
$1.0 |
|
(13%) |
|
GAAP diluted net earnings per share |
|
$0.47 |
|
$0.52 |
|
(10%) |
|
Non-GAAP operating margin |
|
8.6% |
|
8.5% |
|
0.1 pts. |
|
Non-GAAP net earnings ($B) |
|
$1.6 |
|
$1.7 |
|
(6%) |
|
Non-GAAP diluted net earnings per share |
|
$0.88 |
|
$0.89 |
|
(1%) |
|
Cash flow from operations ($B) |
|
$1.7 |
|
$3.6 |
|
(54%) |
|
|
|
|
|
|
|
|
Information about HP's use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.
HP announced financial results for its fiscal 2015 third quarter ended July 31, 2015.
Third quarter net revenue of $25.3 billion was down 8% from the prior-year period and down 2% on a constant currency basis.
Third quarter GAAP diluted net earnings per share (EPS) was $0.47, down from $0.52 in the prior-year period and below its previously provided outlook of $0.50 to $0.54. Third quarter non-GAAP diluted net EPS was $0.88, down from to $0.89 in the prior-year period and above its previously provided outlook of $0.83 to $0.87. Third quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax costs of $750 million and $0.41 per diluted share, respectively, related to separation costs, the amortization of intangible assets, impairment of data center assets, defined benefit plan settlement charges, acquisition-related charges and restructuring charges.
Separation update
On July 1, Hewlett Packard Enterprise filed an initial Registration Statement on Form 10 with the Securities and Exchange Commission (SEC), an important step in the separation process. The filing provides detailed information on the business and historical financial results of Hewlett Packard Enterprise. On August 10, HP filed the first amendment to the Form 10, which included the pro forma cash and debt levels for Hewlett Packard Enterprise.
With the Hewlett Packard Enterprise capital structure determined, credit ratings agencies published expected investment grade ratings for both Hewlett Packard Enterprise and HP Inc., which is in line with our objectives.
On August 12, HP introduced the expected members of the boards of directors for both Hewlett Packard Enterprise and HP Inc., effective upon the completion of the separation. Each board will include members of the current HP board, as well as several new directors chosen after a comprehensive review of personal and professional qualifications as they relate to the specific needs of the two new companies.
"HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group and substantial progress in turning around Enterprise Services," said Meg Whitman, chairman, president and chief executive officer, HP. "I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken."
Outlook
For the fiscal 2015 fourth quarter, HP estimates non-GAAP diluted net EPS to be in the range of $0.92 to $0.98 and GAAP diluted net EPS to be in the range of $0.12 to $0.18. Fiscal 2015 fourth quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.80 per share, related to separation costs, the amortization of intangible assets, restructuring charges, defined benefit plan settlement charges and acquisition-related charges.
For fiscal 2015, HP estimates non-GAAP diluted net EPS to be in the range of $3.59 to $3.65 and GAAP diluted net EPS to be in the range of $1.87 to $1.93. Fiscal 2015 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $1.72 per share, related to separation costs, the amortization of intangible assets, restructuring charges, defined benefit plan settlement charges, impairment of data center assets and acquisition-related charges.
