HP (HPQ) FY2018 results: revenue $58.5 billion, up 12.3% on the year
HP Inc. (HPQ) reported revenue of $58.5 billion for fiscal 2018, the year ended 31 October 2018, up 12.3% on the year before. Net income was $5.3 billion, up 110.9%, and diluted earnings per share $3.26. The figures are the company's own, from the 10-K it filed with the SEC on 13 December 2018.
Revenue
$58.5 billion
+12.3% on the year
FY2011FY2018
Operating margin
6.6%
6.5% a year earlier
FY2011FY2018
Net income
$5.3 billion
+110.9% on the year
FY2011FY2018
Diluted EPS
$3.26
+120.3% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
58,472
52,056
48,238
+12.3%
Cost of revenue
47,803
42,478
39,240
+12.5%
Gross profit
10,669
9,578
8,998
+11.4%
Gross margin
18.2%
18.4%
18.7%
Research and development
1,404
1,190
1,209
+18.0%
Selling, general and administrative
5,099
4,532
3,840
+12.5%
Operating income
3,831
3,368
3,549
+13.7%
Operating margin
6.6%
6.5%
7.4%
Interest expense
312
309
273
+1.0%
Pre-tax income
3,013
3,276
3,761
-8.0%
Income tax
-2,314
750
1,095
Effective tax rate
-76.8%
22.9%
29.1%
Net income
5,327
2,526
2,496
+110.9%
Net margin
9.1%
4.9%
5.2%
Diluted EPS
$3.26
$1.48
$1.43
+120.3%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
4,528
3,677
3,252
+23.1%
Capital expenditure
546
402
433
+35.8%
Free cash flow
3,982
3,275
2,819
+21.6%
Free cash flow margin
6.8%
6.3%
5.8%
Cash from investing
-716
-1,717
48.0
Cash from financing
-5,643
-1,251
-14,423
Depreciation and amortisation
528
354
332
+49.2%
Share-based compensation
268
224
182
+19.6%
Buybacks
2,557
1,412
1,161
+81.1%
Dividends paid
899
894
858
+0.6%
Dividend per share
$0.56
$0.53
$0.50
+5.7%
Diluted shares, weighted
1,634m
1,702m
1,743m
-4.0%
Shares outstanding at period end
1,560m
1,650m
1,712m
-5.5%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
-639
-3,408
-3,889
Debt
5,987
7,819
6,836
-23.4%
Other liabilities
29,274
28,502
26,063
+2.7%
Total liabilities and equity
34,622
32,913
29,010
+5.2%
Fixed assets
2,198
1,878
1,736
+17.0%
Goodwill
5,968
5,622
5,622
+6.2%
Intangible assets
453
3.0
n/a
+15,000.0%
Investments
764
1,210
55.0
-36.9%
Trading assets
764
1,210
n/a
-36.9%
Cash and equivalents
5,166
6,997
6,288
-26.2%
Receivables
5,113
4,414
4,114
+15.8%
Inventory
6,062
5,786
4,484
+4.8%
Other assets
8,134
5,793
6,711
+40.4%
Total assets
34,622
32,913
29,010
+5.2%
10-K for the year ended 31 October 2018, filed 13 December 2018: the filing.