HP Inc. (NYSE:HPQ) Q1 2016 Earnings Conference Call - Final Transcript
Feb 24, 2016 • 05:00 pm ET
Good day and welcome to the first quarter 2016 HP Inc. Earnings Conference Call. My name is Denise and I will be your operator for today's call. [Operator Instructions] I would now like to turn the presentation over to your host for today's call, Diana Sroka, Head of Investor Relations. Please proceed.
Good afternoon. I'm Diana Sroka, Head of Investor Relations for HP Inc, and I would like to welcome you to the FY '16 first quarter earnings conference call with Dion Weisler, HP's President and Chief Executive Officer, and Cathie Lesjak, HP's Chief Financial Officer.
Before handing the call over to Dion, let me remind you that this call is being webcast. A replay of the webcast will be made available shortly after the call for approximately one year. We posted the earnings release and the accompanying slide presentation on our Investor Relations web page at www.HP.com.
As always, elements of this presentation are forward-looking and are based on our best view of the world and our businesses as we see them today. For more detailed information, please see disclaimers in the earnings materials relating to forward-looking statements that involve risks, uncertainties, and assumptions. For a discussion of some of these risks, uncertainties, and assumptions, please refer to HP's SEC reports, including our most recent Form 10-K. HP assumes no obligation and does not intend to update any such forward-looking statements. We also note that the financial information discussed on this call reflects estimates based on information available at this time and could differ materially from the amounts ultimately reported in HP's Form 10-Q for the fiscal quarter ended January 31, 2016.
For financial information that has been expressed on a non-GAAP basis, we've included reconciliations to the comparable GAAP information. Please refer to the tables and slide presentation accompanying today's earnings release. With that, I'll hand it over to Dion.
Dion J. Weisler
Thank you, Diana. Good afternoon, everybody, and thank you for dialing in today. We've completed the first quarter as HP Inc. And while we continued to face macroeconomic and market headwinds, we are executing to the plan we laid out at our Security Analyst Meeting last September.
We delivered non-GAAP diluted net earnings per share of $0.36, in the middle of our outlook range. We returned more than $1 billion of capital to shareholders through our planned quarterly dividend and aggressive share buybacks, taking advantage of the stock price. And while revenue continued to be challenged by market contraction in PCs and core printing, we delivered constant-currency revenue growth in APJ and in strategic growth segments of the portfolio, including commercial mobility, retail solutions, graphics, and services.
Cash flow for the quarter was below our expectations, driven by changes in working capital, which was impacted by lower personal systems volume. We've taken immediate actions to stay on track to deliver our full-year commitment. Cathie will walk you through those details in just a few minutes.
As you consider our financial performance for the quarter, remember that we operate in