HP Inc (NYSE:HPQ) Q2 2019 Earnings Conference Call - Final Transcript

May 23, 2019 • 05:30 pm ET


HP Inc (NYSE:HPQ) Q2 2019 Earnings Conference Call - Final Transcript


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Good day everyone and welcome to the Second Quarter 2019 HP Inc. Earnings Conference Call. My name is William 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) And as a reminder, this conference is being recorded for replay purposes.

And I would now like to turn the call over to Beth Howe, Head of Investor Relations. Please go ahead.

Beth Howe

Good afternoon. I'm Beth Howe, Head of Investor Relations for HP Inc. And I'd like to welcome you to the fiscal 2019 second quarter earnings conference call with Dion Weisler, HP's President and Chief Executive Officer and Steve Fieler, 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 on our website shortly after the call for approximately one year. We posted the earnings release and the accompanying slide presentation on our Investor Relations webpage at investor.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 now and could differ materially from the amount ultimately reported in HP's Form 10-Q for the fiscal quarter ended April 30, 2019 and HP's other SEC filings.

During this webcast, unless otherwise specifically noted, all comparisons are year-over-year comparisons with the corresponding year ago period. 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 for those reconciliations.

And now, I'll turn it over to Dion.

Dion Weisler

Thanks, Beth. Good afternoon and thank you for joining us. In Q2, as you can see from our results, we are delivering on our plan, demonstrating strong execution and progress on our priorities. Our strategy remains consistent. The engineer experiences that amaze, while driving profitable growth. We are striking the right balance between driving results for today and investing for the long-term. We are leading in our core PC and print markets, while extending our portfolio of services and solutions in our growth and future categories.

In the second quarter, revenue was $14 billion, up 2% in constant currency. Non-GAAP diluted EPS was $0.53, up 10% and at the high end of our outlook range. Free cash flow was strong at $747 million and we returned $936 million