HP Reports Decline in Q4

HP Reports Decline in Q4

HP announced fiscal 2020 net revenue of $56.6 billion, down 3.6% (down 2.3% in constant currency) from the prior-year period.

Some highlights for fiscal 2020 include:

• GAAP diluted net earnings per share (“EPS”) of $2.00, above the previously provided outlook of $1.83 to $1.87 per share
• non-GAAP diluted net EPS of $2.28, above the previously provided outlook of $2.16 to $2.20 per share
• net revenue of $56.6 billion, down 3.6% from the prior-year period
• net cash provided by operating activities of $4.3 billion, free cash flow of $3.9 billion
• returned $4.1 billion to shareholders in the form of share repurchases and dividends

In the fourth quarter (Q4), net revenue was $15.3 billion, down 1.0% (up 0.1% in constant currency) from the prior-year period and up 7% sequentially.

Some highlights for Q4 include:

• GAAP diluted net EPS of $0.49, above the previously provided outlook of $0.32 to $0.36 per share
• non-GAAP diluted net EPS of $0.62, above the previously provided outlook of $0.50 to $0.54 per share
• net revenue of $15.3 billion, down 1.0% from the prior-year period
• net cash provided by operating activities of $1.9 billion, free cash flow of $1.8 billion
• returned $1.6 billion to shareholders in the form of share repurchases and dividends

“We closed out a strong quarter with a beat on the top and bottom line. The strength of our innovation with the rigor of our execution drove sequential growth in revenue, operating profit, non-GAAP EPS and cash flow,” said Enrique Lores, President and CEO, HP Inc. “We had record unit shipments in the quarter, reflecting the important role HP technology is playing in the lives of our customers. Our results give us great confidence in our ability to drive long-term growth and shareholder value in 2021 and beyond.”

Fiscal 2020 fourth quarter segment results

• Personal Systems net revenue was $10.4 billion, flat year over year (up 1% in constant currency) with a 5.1% operating margin. Consumer net revenue increased 24% and Commercial net revenue decreased 12%. Total units were up 7% with Notebooks units up 25% and Desktops units down 31%.
• Printing net revenue was $4.8 billion, down 3% year over year (down 2% in constant currency) with a 14.8% operating margin. Total hardware units were up 14% with Consumer hardware units up 18% and Commercial hardware units down 10%. Supplies net revenue was down 1% (flat in constant currency).

Outlook

For the fiscal 2021 first quarter, HP estimates GAAP diluted net EPS to be in the range of $0.58 to $0.64 and non-GAAP diluted net EPS to be in the range of $0.64 to $0.70. Fiscal 2021 first quarter non-GAAP diluted net EPS estimates exclude $0.06 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

Related:

• HP Beats Q3 with Strong Results

Comment:

Please leave your comments to the story “HP Reports Decline in Q4” below.