HP Net Revenue Falls in Q1

HP Net Revenue Falls in Q1

According to HP, its net revenue turned out to be $13.8 billion in the first quarter of 2023 (Q1, 2023), down 18.8% or 14.7% in constant currency from the same period last year.

“We delivered on our non-GAAP EPS target despite industry-wide headwinds, reflecting disciplined execution across our business,” said Enrique Lores (pictured), HP President, and CEO. “The Future Ready plan we announced last quarter is having an immediate impact, as we continue to reduce our costs while maintaining investments in long-term growth.”

Some highlights include:

• First quarter GAAP diluted net earnings per share (“EPS”) of $0.49, within the previously provided outlook of $0.47 to $0.57 per share
• First quarter non-GAAP diluted net EPS of $0.75, within the previously provided outlook of $0.70 to $0.80 per share
• First quarter net revenue of $13.8 billion, down 18.8% from the prior-year period
• First quarter net cash used in operating activities of $(16) million, free cash flow of $(0.2) billion
• First quarter returned $0.4 billion to shareholders in the form of share repurchases and dividends

By segment, Printing net revenue was $4.6 billion, down 5% year over year (down 2% in constant currency) with a 18.9% operating margin. Consumer Printing net revenue was down 3% and Commercial Printing net revenue was up 2%. Supplies net revenue was down 7% (down 6% in constant currency). Total hardware units were up 2% overall, with Consumer Printing units up 3% and Commercial Printing units down 8%.

Outlook

For the fiscal 2023 second quarter (Q2), HP estimates GAAP diluted net EPS to be in the range of $0.40 to $0.50 and non-GAAP diluted net EPS to be in the range of $0.73 to $0.83.

Q2 non-GAAP diluted net EPS estimates exclude $0.33 per diluted share, primarily related to restructuring and other charges, acquisition, and divestiture charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments, and the related tax impact on these items.

For fiscal 2023, HP reaffirms GAAP diluted net EPS to be in the range of $2.22 to $2.62 and non-GAAP diluted net EPS to be in the range of $3.20 to $3.60.

Fiscal 2023 non-GAAP diluted net EPS estimates exclude $0.98 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)/charges, 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 Reports Net Revenue Decline in Fiscal 2022 and Q4
• HP Settles Dynamic Security Issue
• HP Reports Revenue Decline in Q3
• HP Launches Cartridge Recycling Initiative in ASEAN
• HP Boasts Crushing 100K Cartridges a Day

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