HP Net Revenue Drops in Q3

HP Net Revenue Drops in Q3

According to HP, its net revenue turned out to be $13.2 billion in the third quarter of the fiscal year 2023 (Q3, 2023), down 9.9% (down 7.4% in constant currency) from the prior-year period.

“We delivered a solid quarter of sequential growth, combining strong innovation with disciplined execution to gain profitable PC market share and achieve our non-GAAP EPS target,” said Enrique Lores, HP President and CEO. “While we expect another quarter of sequential growth in Q4, the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result. We remain confident in our ability to drive long-term growth and value creation as we focus on the things we can control and make continued progress against our Future Ready plan.”

Some highlights include:

• Third quarter GAAP diluted net earnings per share (“EPS”) of $0.76, above the previously provided outlook of $0.61 to $0.71 per share
• Third quarter non-GAAP diluted net EPS of $0.86, within the previously provided outlook of $0.81 to $0.91 per share
• Third quarter net revenue of $13.2 billion, down 9.9% from the prior-year period
• Third quarter net cash provided by operating activities of $1.0 billion, free cash flow of $0.9 billion
• Third quarter returned $0.3 billion to shareholders in the form of dividends
• Retired long-term debt of $1.1 billion

By segment, Printing net revenue was $4.3 billion, down 7% year over year (down 5% in constant currency) with an 18.6% operating margin. Consumer Printing net revenue was down 28% and Commercial Printing net revenue was down 6%. Supplies net revenue was down 2% (flat in constant currency). Total hardware units were down 19% overall, with Consumer Printing units down 20% and Commercial Printing units down 8%.

Outlook

For the fiscal 2023 fourth quarter, HP estimates GAAP diluted net EPS to be in the range of $0.65 to $0.77 and non-GAAP diluted net EPS to be in the range of $0.85 to $0.97. Fiscal 2023 fourth 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 $2.95 to $3.07and non-GAAP diluted net EPS to be in the range of $3.23 to $3.35. Fiscal 2023 non-GAAP diluted net EPS estimates exclude $0.28 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, debt extinguishment benefit, non-operating retirement-related credits, tax adjustments and the related tax impact on these items. For fiscal 2023, HP anticipates generating free cash flow of approximately $3.0 billion.

Related:

• HP Revenue Declines in Q2
• 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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