HP Inc is forecasting GAAP earnings per share of US$2.04 to US$2.14 in fiscal 2019, the company said this week, with free cash flow of at least US$3.7 billion during the year.
The forecast came as part of the PC and printer vendor's 2018 Securities Analyst Meeting in New York.
"We continue to deliver strong growth in earnings and cash flow, while taking profitable share with breakthrough innovation and operational excellence," said Dion Weisler, president and CEO, in a statement. "I’m enormously proud of what we have accomplished in the last twelve months. We continued to showcase our ability to reinvent the core, make progress against our growth initiatives, and lay the foundation for our future."
HP has climbed to the top of the global PC market. The company was No. 1 with a 23.9 percent market share in the second quarter, according to IDC, putting it ahead of rivals Lenovo, Dell and others.
"Our goal is to outgrow our respective markets," said chief financial officer Steve Fieler at the analysts meeting, according to a Bloomberg report. "For revenue we expect to continue being market leaders."
For the first three quarters ended 31 July of its fiscal 2018, HP reported revenue of US$43.11 billion, up 13 percent from US$38.13 billion in the first three quarters of fiscal 2017.
Fiscal 2018 "has been a strong year for HP," Fieler said in a statement. "In FY19 we will continue to execute against our core, growth and future strategy, driving productivity improvements, and investing for the future to maximise shareholder value over the long term."
HP estimates that for fiscal 2019, which starts 1 November, GAAP diluted net earnings per share will be in the range of US$2.04 to US$2.14. Non-GAAP diluted net EPS for the year are expected to range between US$2.12 to US$2.22.
The non-GAAP estimates exclude restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortisation of intangible assets and other costs.
When it reported its fiscal third quarter results in August, HP forecast that GAAP EPS for the soon-to-end fiscal 2018 will be in the range of US$2.82 to US$2.85.
The company said the US$3.7 billion free cash flow estimate for the new fiscal year is "based on the current environment."
HP expects that in fiscal 2019 it will return approximately 75 percent of free cash flow to shareholders with a 15 percent increase in its planned quarterly dividend and the balance returned through share repurchases. Long-term, HP expects to return 50 percent to 75 percent of annual cash flow to shareholders.