HP Inc (NYSE:HPQ) Q2 2016 Earnings Conference Call - Final Transcript
May 25, 2016 • 09:00 am ET
Good afternoon and welcome to the Second Quarter 2016 HP Inc. Earnings Conference Call. My name is Amy and I'll be your conference moderator for today's call. At this time all participants will be in listen-only mode. We will be facilitating the question-and-answer session towards the end of the conference. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.
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'd like to welcome you to the fiscal 2016 second 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 webpage 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 and Form 10-Q. 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 April 30, 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.
And now, I will hand it over to Dion.
Thank you, Diana, and good afternoon, everyone, and thank you for joining us today. I'm pleased with our second quarter results. We did what we set out to do.
Non-GAAP diluted net earnings per share was $0.41 above our previously provided outlook range. Free cash flow was strong at $1.5 billion. We took action to improve our cash conversion cycle and are on track to deliver our full year outlook. And we returned more than $0.5 billion of capital to shareholders through dividends and share buybacks.
Amid difficult market conditions, net revenue was in line with our expectations, down 11% year-over-year as reported or down 5% in constant currency. And in APJ for the second quarter in a row, we delivered constant currency revenue growth with strength in personal assistance across much of the region. I will not be completely satisfied with company performance until we return to sustained growth. Delivering our financial