Summary of HP Inc. Conference Call Company Overview - **Company**: HP Inc. (NYSE: HPQ) - **Event**: Cowen 50th Annual Technology, Media & Telecom Conference - **Date**: June 2, 2022 - **Participants**: Enrique Lores (CEO), Krish Sankar (Cowen Analyst) Key Points Business Performance - HP demonstrated strong performance in a challenging environment, maintaining consistent results over multiple quarters [3] - Key growth businesses are expected to exceed $10 billion by year-end, with $5.6 billion achieved in the first half [3] - HP has an aggressive capital return plan, including $1 billion in share buybacks and nearly $300 million in dividends last quarter [3] Personal Systems Segment - Commercial PCs account for approximately 65% of HP's revenue, with better margins compared to consumer PCs [5] - The PC market is expected to see a slight decline in unit sales but revenue growth due to a shift towards premium products [6][8] - Revenue growth is projected between 1% to 3%, with opportunities in peripherals and services contributing to margin improvement [9] Peripheral Business and Acquisitions - HP's acquisition of Poly aims to enhance offerings in hybrid work environments, focusing on professional studio setups and video conferencing systems [11][12] - The gaming peripherals market is significant, with gamers spending three times more on peripherals than on PCs [11] Market Dynamics - Demand for commercial PCs remains strong, with consistent sellout rates higher than pre-pandemic levels [16] - The war in Ukraine has impacted consumer business in Europe, leading to a slowdown in demand [18] Pricing Strategy - Average selling prices have increased due to a mix shift towards premium units and rising costs [20] - HP has not had to discount products aggressively due to strong demand, which has positively impacted pricing [21] Printing Business - HP's print margins are currently above the target range of 16% to 18%, but a return to this range is expected as supply normalizes [24] - The hybrid work environment is projected to reduce office printing to about 80% of pre-pandemic levels [29] - Supply chain challenges are affecting print more than personal systems, particularly due to unique chip designs [26][27] Subscription Model and Customer Engagement - HP aims to increase adoption of the Instant Ink subscription model, currently at 20%-30%, with a goal of reaching 50%-60% [36] - The HP+ program rollout is progressing well, with a majority of customers opting for the HP+ solution [41] Future Outlook - HP anticipates continued demand in the commercial sector despite uncertainties such as inflation and geopolitical tensions [16] - The company is committed to returning at least $16 billion to shareholders by the end of 2022, with plans for aggressive buybacks [55] Transformation and Cost Management - HP has successfully executed its cost-saving transformation plan, raising its savings target from $1 billion to $1.2 billion [59] - The company continues to seek efficiencies through better digital tools and processes [59] Additional Insights - HP's strong free cash flow generation supports its capital return strategy, with $4 billion in buybacks planned for the year [54] - The company is focused on maintaining profitability in a competitive landscape, with expectations of industry consolidation in the printing sector over time [45]

Summary of HP Inc. Conference Call Company Overview - **Company**: HP Inc. (NYSE: HPQ) - **Event**: Bernstein 38th Annual Strategic Decisions Conference - **Date**: June 2, 2022 - **Participants**: Enrique Lores (CEO), Toni Sacconaghi (Bernstein Analyst) Key Highlights Financial Performance - HP delivered strong earnings, guiding EPS to the high end of the range, with a portfolio of five growth businesses expected to exceed $10 billion by year-end, achieving $5.6 billion in the first half [4][5] - The company plans to return approximately $1.3 billion to shareholders through dividends and share buybacks [5] Market Conditions - **Europe**: Notable consumer weakness observed, attributed to geopolitical tensions and energy crisis concerns, leading to increased consumer hesitancy [7] - **China**: Significant impact on sales due to strict lockdowns, affecting consumer purchasing capabilities [11] - **Backlog Management**: HP aims to reduce its backlog, which was nearly a quarter's worth of PC orders, targeting normalization by the end of the year or early next year [13] Demand Dynamics - **PC Demand**: Increased demand during the pandemic led to a shift from one PC per home to multiple PCs, with expectations of sustainable demand despite potential short-term declines [22][23] - **Printing Demand**: A decline in office printing due to remote work, with projections indicating office printing will be around 80% of pre-pandemic levels [56] Supply Chain Challenges - HP is facing component shortages impacting PC shipments, particularly due to yield issues with a key supplier [18] - The company has adapted its order management and supply chain processes to better handle the current environment [42][43] Pricing and Margins - HP experienced favorable pricing conditions due to demand exceeding supply, contributing to improved margins [26] - Future projections indicate a return to historical margin levels for printing, while PC margins are expected to remain elevated due to a focus on premium products and adjacent services [27][45] Strategic Initiatives - HP is focusing on expanding into higher-margin adjacencies such as peripherals and services to offset potential declines in PC pricing [45] - The acquisition of Poly is seen as a significant opportunity in the video conferencing market, with a large addressable market of meeting rooms [50] ESG Considerations - HP is committed to sustainability, with initiatives aimed at making printing forest positive and reducing paper usage [63] Capital Return Strategy - HP plans to return 100% of free cash flow to shareholders unless better investment opportunities arise [73] Additional Insights - The company is monitoring trends closely, especially in Europe, where CEO sentiment differs significantly from that in the U.S. [9] - HP's strategy emphasizes value creation over market share growth, focusing on profitability and premium product offerings [40] This summary encapsulates the key points discussed during the conference call, highlighting HP's financial performance, market conditions, strategic initiatives, and future outlook.

HP Inc. (NYSE:HPQ) Q2 2022 Earnings Conference Call May 31, 2022 5:00 PM ET Company Participants Orit Keinan-Nahon - Head, Investor Relations Enrique Lores - President & Chief Executive Officer Marie Myers - Chief Financial Officer Conference Call Participants Krish Sankar - Cowen and Company Aaron Rakers - Wells Fargo Amit Daryanani - Evercore Toni Sacconaghi - Bernstein Erik Woodring - Morgan Stanley Jim Suva - Citigroup Ananda Baruah - Loop Capital David Vogt - UBS Operator Good day, everyone, and welcom ...

HP Inc. (NYSE:HPQ) Q1 2022 Earnings Conference Call February 28, 2022 5:00 PM ET Company Participants Orit Keinan-Nahon - Head, Investor Relations Enrique Lores - President and Chief Executive Officer Marie Myers - Chief Financial Officer Conference Call Participants Shannon Cross - Cross Research Ananda Baruah - Loop Capital Jim Suva - Citi Toni Sacconaghi - Bernstein Amit Daryanani - Evercore Wamsi Mohan - Bank of America Erik Woodring - Morgan Stanley David Vogt - UBS Samik Chatterjee - JPMorgan Operator ...

Summary of HP Inc. Conference Call Company Overview - **Company**: HP Inc. (NYSE: HPQ) - **Industry**: Personal Systems (PCs, displays, accessories, and services) - **Business Size**: Approximately $40 billion [2] Key Points and Arguments Financial Performance - **Q4 Performance**: Personal systems revenue increased by 10% on a constant currency basis, with a significant price increase of 17% quarter-over-quarter [4][6] - **Market Dynamics**: The company is experiencing a structural increase in demand alongside supply constraints, affecting quarter-to-quarter comparisons [5][16] Demand and Supply Dynamics - **Hybrid Work Impact**: COVID-19 has accelerated the shift to hybrid work, which is expected to be a permanent change, requiring ongoing technology support [9][10] - **Investment in Home Setups**: 75% of companies are investing in improving home office setups, indicating a long-term shift in work environments [10] - **Education Sector**: The hybrid learning model has gained traction, with expectations for continued growth in educational technology [11] Market Outlook - **Total Addressable Market**: The market for personal systems is projected to grow to $560 billion, a 40% increase from pre-pandemic expectations [15] - **Supply Constraints**: The company anticipates supply constraints, particularly in integrated circuits (ICs), to persist into the second half of the year [16] Refresh Cycles and Consumer Behavior - **Faster Refresh Cycles**: The need for devices that support video conferencing and multitasking is driving faster refresh cycles, particularly in notebooks compared to desktops [18][19] - **Consumer vs. Commercial PCs**: There is a blending of consumer and commercial PC specifications, with commercial purchases expected to grow due to security and productivity needs [30][31] Margin and Pricing Strategy - **Margin Targets**: HP has raised its margin targets for the personal systems business to 5% to 7%, with expectations to operate at the high end of this range in 2022 [38][40] - **Pricing Management**: The company is focused on managing pricing and product mix to maintain margins despite supply chain challenges [44][45] Chromebook Segment - **Chromebook Positioning**: While Chromebooks are lower-margin products, they are considered essential in the education sector and are expected to remain a part of HP's portfolio [48][49] Backlog and Supply Chain Management - **Backlog Status**: HP currently has about a quarter's worth of backlog, primarily in the commercial segment, which is expected to decrease as supply improves [55] - **Supply Chain Strategy**: The company is enhancing direct relationships with suppliers and simplifying its portfolio to navigate supply constraints effectively [57][59] Peripheral and Services Growth - **Peripheral Strategy**: HP views peripherals as part of its experience strategy, with a focus on gaming and hybrid work solutions [66][67] - **Innovation in Audio/Video**: The company is integrating advanced audio and video technologies into its products to enhance remote work experiences [68] Additional Important Insights - **Consumer Behavior Trends**: There is a growing trend towards having multiple PCs per household, driven by the need for personal and professional devices [26][28] - **Market Penetration**: HP sees significant growth potential in emerging markets where PC penetration remains low [24] This summary encapsulates the key insights from the HP Inc. conference call, highlighting the company's strategic direction, market dynamics, and financial performance.