HP Reports Growth in Q4 and FY 2021

HP Reports Growth in Q4 and FY 2021

In the fourth quarter of the fiscal year 2021 (Q4, 2021), HP net revenue was $16.7 billion, up 9.3% (up 6.9% in constant currency) from the prior-year period.

Some other highlights about the fourth quarter include:

• GAAP diluted net EPS was $2.71, up from $0.49 in the prior-year period and above the previously provided outlook of $0.82 to $0.88.
• Non-GAAP diluted net EPS was $0.94, up from $0.62 in the prior-year period and above the previously provided outlook of $0.84 to $0.90.
• Non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $2,023 million, or $1.77 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, defined benefit plan settlement (gains)/charges, Oracle litigation proceeds, and tax adjustments.

By segment, Printing net revenue was $4.9 billion in Q4, up 1% year over year (flat in constant currency) with a 17.0% operating margin. Total hardware units were down 26% with Consumer units down 28% and Commercial units down 12%. Consumer net revenue was down 6% and Commercial net revenue was up 19%. Supplies net revenue was down 2% (down 3% in constant currency).

For the fiscal year 2021, HP net revenue turned out to be $63.5 billion, up 12.1% (up 10.2% in constant currency) from the prior-year period.

Some other highlights relating to the fiscal year 2021 include:

• GAAP diluted net EPS was $5.33, up from $2.00 in the prior-year period and above the previously provided outlook of $3.56 to $3.62.
• Non-GAAP diluted net EPS was $3.79, up from $2.28 in the prior-year period and above the previously provided outlook of $3.69 to $3.75.
• Non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $1,883 million, or $1.54 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, defined benefit plan settlement (gains)/charges, Oracle litigation proceeds, debt extinguishment costs, and tax adjustments.

“Our results reflect a growth-oriented company on its front foot and hitting its stride. We delivered a very strong quarter to close out an exceptional year of double-digit revenue, operating profit and EPS growth while returning record levels of capital to shareholders,” said Enrique Lores (pictured), HP President and CEO. “HP is at the heart of hybrid with an innovative portfolio of hardware, software and subscriptions that position the company well for sustained growth in the fiscal year 2022 and beyond.”

Outlook

For the fiscal 2022 first quarter, HP estimates GAAP diluted net EPS to be in the range of $0.92 to $0.98 and non-GAAP diluted net EPS to be in the range of $0.99 to $1.05. Fiscal 2022 first quarter non-GAAP diluted net EPS estimates exclude $0.07 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 2022, HP estimates GAAP diluted net EPS to be in the range of $3.86 to $4.06 and non-GAAP diluted net EPS to be in the range of $4.07 to $4.27. Fiscal 2022 non-GAAP diluted net EPS estimates exclude $0.21 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 2022, HP anticipates generating free cash flow of at least $4.5 billion.

Related:

• HP Reports Growth in Q3
• HP Reports Double-digit Growth for Q2
• HP Reports Strong Growth for Q1
• HP Reveals 2022 Outlook

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