HP Raises Annual Dividend by 5%, Provides FY24 Outlook & More

HP Inc HPQ provided an FY24 outlook, updated on its cost saving initiatives, and raised its annual dividend. 

The company expects adjusted EPS of $3.25-$3.65 vs. consensus of $3.47 and FCF of $3.1 billion-$3.6 billion for FY24.

HPQ plans to return about 100% of FCF through dividends and share repurchases. 

Dividend: The Board of Directors raised the dividend per share by 5% to $1.1024.

The company also anticipates increasing its Future Ready plan annualized gross run rate structural cost savings by $200 million to $1.6 billion by the end of FY25, with no expected changes to estimated restructuring and other charges of about $1.0 billion.

Related: From Underperform To Buy: Why BofA Sees HPQ's Growth Potential Amid Tight Cost Controls And Profitable Print Projects

"Our Future Ready plan is strengthening our core business, accelerating our expansion in services, building new operational capabilities, and improving our structural costs. Most importantly, we are innovating to meet the changing needs of our customers and we see attractive opportunities to drive profitable growth across our business," commented Enrique Lores, President and CEO.

In August, the company reported Q3 adjusted EPS of $0.86, beating the consensus of $0.80 and sales of $13.20 billion, surpassing the street view of $12.39 billion. 

Price Action: HPQ shares are trading higher by 0.91% at $26.67 premarket on the last check Wednesday.