HP Inc (NYSE:HPQ) Q3 2016 Earnings Conference Call - Final Transcript
Aug 24, 2016 • 05:00 pm ET
Good afternoon and welcome to the Q3 2016 HP Inc. Earnings Conference Call. My name is Austin 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 a 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. 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 third 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. (Forward-Looking Cautionary Statements)
And now, I will hand it over to Dion.
Thank you, Diana. Good afternoon, everyone, and thank you for joining us today. I'm pleased with the progress we continue to make. This quarter's results are all about focus and execution. We continue to be disciplined to deliver in our core, gain momentum in our growth segments, and hit strategic milestones in our future initiatives.
Let me start with our overall performance in the third quarter. We achieved all of our financial objectives. We delivered non-GAAP net earnings per share of $0.48, above our previously provided outlook range. We delivered solid free cash flow of $1 billion as a result of strength in personal systems and a continued focus on working capital metrics. And we returned nearly $300 million of capital to shareholders through dividends and share repurchases.
As we move towards the end of our fiscal year, we are seeing the benefits of the significant productivity initiatives and restructuring actions we put in place at the start of this year. We are on track to implement more than $1 billion of savings, providing us opportunity to invest back into our businesses to drive long-term success. In Q3, our revenue trajectory improved, down less than 1% year over year in constant currency, driven by strength in personal systems, offset by expected declines in printing. As we previously said, we believed overall revenue declines would moderate in the second half of the year. And that is exactly what is happening.
The PC market improved slightly more than forecasted, and we were well positioned with an innovative product lineup and healthy channel inventory levels. We capitalized on market opportunities and gained share at the expense of our competitors, especially in the high end premium category. Innovation in our portfolio is serving us well. We are building on a rich heritage and delivering experiences that amaze our customers and partners. Our products and solutions contain the magic