HP Reports Strong Growth for Q1

HP Reports Strong Growth for Q1

HP Inc. and its subsidiaries (“HP”) announced fiscal 2021 first-quarter (Q1) net revenue of $15.6 billion, up 7.0% (up 6.6% in constant currency) from the prior-year period.

Some highlights include:

• GAAP diluted net earnings per share (“EPS”) of $0.83, above the previously provided outlook of $0.58 to $0.64 per share
• Non-GAAP diluted net EPS of $0.92, above the previously provided outlook of $0.64 to $0.70 per share
• Net revenue of $15.6 billion, up 7.0% from the prior-year period
• Net cash provided by operating activities of $1.0 billion, free cash flow of $0.9 billion
• Returned $1.6 billion to shareholders in the form of share repurchases and dividends

“It was an exceptional start to the year with strong revenue, profit, and EPS growth. The strength of our portfolio and diversity of our businesses is driving our performance and positioning HP well for the future,” said Enrique Lores, HP President and CEO. “Simply put, we are doing what we said we would do – and our strategy is working.”

By segment, printing net revenue was $5.0 billion, up 7% year over year (up 7% in constant currency) with a 19.8% operating margin. Total hardware units were up 16% with Consumer hardware units up 18% and Commercial hardware units flat. Consumer net revenue increased 55% and Commercial net revenue decreased 11%. Supplies net revenue was up 3% (up 4% in constant currency).

Outlook

For the fiscal 2021 second quarter, HP estimates GAAP diluted net EPS to be in the range of $0.82 to $0.88 and non-GAAP diluted net EPS to be in the range of $0.84 to $0.90. Fiscal 2021 second quarter non-GAAP diluted net EPS estimates exclude $0.02 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirementrelated (credits)/charges, tax adjustments and the related tax impact on these items.

For fiscal 2021, HP estimates GAAP diluted net EPS to be in the range of $2.98 to $3.08 and non-GAAP diluted net EPS to be in the rangeof $3.15 to $3.25. Fiscal 2021 non-GAAP diluted net EPS estimates exclude $0.17 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items. For fiscal 2021, HP anticipates generating free cash flow of at least $4.0 billion.

More information on HP’s earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at investor.hp.com

Related:

• HP Reports Decline in Q4
• HP Beats Q3 with Strong Results

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