HP Revenue Declines in Q2

HP Revenue Declines in Q2

HP Inc. and its subsidiaries (“HP”) announced fiscal 2023 second-quarter (Q2) net revenue of $12.9 billion, down 21.7% (down 18.0% in constant currency) from the prior-year period.

“Our disciplined execution and strong innovation in a tough macro environment allowed us to deliver non-GAAP EPS at the high-end of our target in Q2,” said Enrique Lores, HP President and CEO. “We are well-positioned to win in our markets and drive long-term sustainable growth as we make continued progress against our Future Ready plan.”

Some other highlights include:

• Second quarter GAAP diluted net EPS was $1.07, up from $0.94 in the prior-year period and above the previously provided outlook of $0.40 to $0.50.
• Second quarter non-GAAP diluted net EPS was $0.80, down from $1.08 in the prior-year period and within the previously provided outlook of $0.73 to $0.83.
• Second quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $(269) million, or $(0.27) per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits and tax adjustments.

By segment, Printing net revenue was $4.7 billion, down 5% year over year (down 2% in constant currency) with a 19.0% operating margin. Consumer Printing net revenue was down 19% and Commercial Printing net revenue was up 5%. Supplies net revenue was down 4% (down 3% in constant currency). Total hardware units were down 4% overall, with Consumer Printing units down 5% and Commercial Printing units flat.

Outlook

For the fiscal 2023 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.61 to $0.71 and non-GAAP diluted net EPS to be in the range of $0.81 to $0.91. Fiscal 2023 third quarter non-GAAP diluted net EPS estimates exclude $0.20 per diluted share, primarily related to restructuring and other charges, acquisition, and divestiture charges, amortization of intangible assets, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

For fiscal 2023, HP estimates GAAP diluted net EPS to be in the range of $2.91 to $3.11 and non-GAAP diluted net EPS to be in the range of $3.30 to $3.50. Fiscal 2023 non-GAAP diluted net EPS estimates exclude $0.39 per diluted share, primarily related to restructuring and other charges, acquisition, and divestiture charges, amortization of intangible assets, debt extinguishment costs, non-operating retirement-related credits, tax adjustments and the related tax impact on these items. For fiscal 2023, HP anticipates generating free cash flow in the range of $3.0 to $3.5 billion.

Related:

• HP Net Revenue Falls in Q1
• HP Reports Net Revenue Decline in Fiscal 2022 and Q4
• HP Settles Dynamic Security Issue
• HP Reports Revenue Decline in Q3

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