HPQ HP Inc

   By Maria Armental 
 

HP Inc., locked in a hostile takeover fight with Xerox Holdings Corp., reported first-quarter results on Monday. Here's what you need to know:

PROFIT: Net income fell to $678 million, or 46 cents a share, from $803 million, or 51 cents a share. On an adjusted basis, profit rose to 65 cents a share from 52 cents a share a year earlier. HP had projected profit of 39 cents to 42 cents a share, or 53 cents to 56 cents a share on an adjusted basis. Analysts surveyed by FactSet expect an adjusted profit of 54 cents a share.

REVENUE: Net revenue fell to $14.62 billion from $14.71 billion a year earlier. Analysts expected sales to fall to about $14.63 billion.

OUTLOOK: HP now expects to make $2.03 to $2.13 a share for the year, or $2.33 to $2.43 a share on an adjusted basis. It previously projected $2 to $2.10 a share, or $2.24 to $2.32 a share as adjusted. It expects earnings of $3.25 to $3.65 a share in fiscal 2022.

BUYBACK: HP raised its share buyback program to $15 billion 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.

CASH & DEBT: HP ended the quarter with $4.21 billion in cash, down from $4.5 billion as of Oct. 31, and about $4.86 billion in debt.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

February 24, 2020 16:21 ET (21:21 GMT)

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