(MENAFN - Baystreet.ca) HP Inc (NYSE:HPQ) reported upbeat earnings for its third quarter, while sales missed estimates.
The Palo Alto, Calif.-based HPQ recorded third-quarter GAAP diluted net earnings per share of $0.78, above the previously provided outlook of $0.49 to $0.52 per share
Third-quarter net revenue was $14.6 billion, up 0.1% from the prior-year period. Third-quarter net cash provided by operating activities of $2.3 billion, free cash flow of $2.2 billion. Third-quarter returned $0.8 billion to shareholders in the form of share repurchases and dividends.
HP generated $2.2 billion of free cash flow in the third quarter. Free cash flow includes net cash provided by operating activities of $2.3 billion less net investments in and proceeds from the sale of property, plant and equipment of $172 million.
HP's dividend payment of $0.1602 per share in the third quarter resulted in cash usage of $0.2 billion. HP also utilized $0.5 billion of cash during the quarter to repurchase approximately 26.5 million shares of common stock in the open market.
"We continued to deliver strong free cash flow and non-GAAP EPS growth, while raising our non-GAAP EPS outlook," said CEO Dion Weisler. "We are delivering industry leading innovation across our portfolio, and I am confident we are taking the right actions to position HP for the future."
The company also announced Weisler will step down as CEO, while remaining a director on the company's board. Enrique Lores will be appointed CEO effective this November.
Shares began Friday down $1.30, or 6.9%, to $17.64