HP Reports Double-digit Growth for Q2

HP Reports Double-digit Growth for Q2

“We delivered another strong quarter, with double-digit top and bottom-line growth. HP technology is increasingly at the heart of hybrid work and we are benefitting from exceptional demand for our products and services,” said Enrique Lores (pictured), HP Inc. President and CEO.

During the second quarter (Q2), HP net revenue increased 27.3% year-over-year to US$15.9 billion.

Some other highlights include:

• GAAP diluted net earnings per share (“EPS”) of $0.98, above the previously provided outlook of $0.82 to $0.88 per share
• Non-GAAP diluted net EPS of $0.93, above the previously provided outlook of $0.84 to $0.9 per share
• Net revenue of $15.9 billion, up 27.3% from the prior-year period
• Net cash provided by operating activities of $1.4 billion, free cash flow of $1.3 billion
• Returned $1.8 billion to shareholders in the form of share repurchases and dividends

By segment, printing net revenue was $5.3 billion, up 28% year over year with a 17.9% operating margin. Total hardware units were up 42% with consumer units up 45% and commercial units up 22%. Consumer net revenue increased 77% and commercial net revenue increased 34%. Supplies net revenue was up 17%.

Outlook

For the fiscal 2021 third quarter (Q3), HP estimates GAAP diluted net EPS to be in the range of $0.77 to $0.81 and non-GAAP diluted net EPS to be in the range of $0.81 to $0.85. Non-GAAP diluted net EPS in Q3 estimates exclude $0.04 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 estimates GAAP diluted net EPS to be in the range of $3.24 to $3.34 and non-GAAP diluted net EPS to be in the range of $3.40 to $3.50. Fiscal 2021 non-GAAP diluted net EPS estimates exclude $0.16 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 a free cash flow of at least $4.0 billion.

Related:

• HP Reports Strong Growth for Q1
• HP Reports Decline in Q4
• HP Beats Q3 with Strong Results

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