HP Predicts Continued Momentum In New Year, Forecasts FY19 EPS Of $2.04 To $2.14

HP Inc. is forecasting GAAP earnings per share of $2.04 to $2.14 in fiscal 2019, the company said Wednesday, with free cash flow of at least $3.7 billion during the year.

The forecast came as part of the PC and printer maker'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."

[Related: HP Unveils The Spectre Folio To ‘Shatter The Mold’ Of Traditional PCs]

HP has climbed to the top of the global PC market. The Palo Alto, Calif.-based 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 July 31) of its fiscal 2018, HP has reported revenue of $43.11 billion, up 13 percent from $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 maximize shareholder value over the long term."

HP estimates that for fiscal 2019, which starts Nov. 1, 2018, GAAP diluted net earnings per share will be in the range of $2.04 to $2.14. Non-GAAP diluted net EPS for the year are expected to range between $2.12 to $2.22.

The non-GAAP estimates exclude restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization 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 $2.82 to $2.85.

The company said the $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.

As of 5:45 p.m. ET, HP's share price was up 2.26 percent in after-hours trading to $26.65.