HP Reports Solid Performance in Q2

HP Reports Solid Performance in Q2

According to HP,  net revenue in the second quarter of the fiscal year 2022 (Q2, 2022) turned out to be $16.5 billion, up 3.9% (up 4.9% in constant currency) from the prior-year period.

“We delivered a solid quarter of revenue and non-GAAP EPS growth while returning significant capital to shareholders,” said Enrique Lores (pictured), HP President and CEO. “Collectively, our key growth businesses grew double digits and drove $5.6 billion in revenue in the first half of the year. Our consistent performance in the face of a volatile macro environment gives us confidence in our plans to build a stronger HP.”

Some highlights regarding the Q2 results include:

• GAAP diluted net earnings per share (“EPS”) was $0.94, compared to the previously provided outlook of $0.95 to $1.01 per share
• Non-GAAP diluted net EPS was $1.08, at the high end of the previously provided outlook of $1.02 to $1.08 per share
• Net cash provided by operating activities was $0.5 billion, and free cash flow was $0.4 billion
• Returned $1.3 billion to shareholders in the form of share repurchases and dividends

By Segment:

• Personal Systems net revenue was $11.5 billion, up 9% year over year (up 11% in constant currency) with a 6.9% operating margin. Consumer net revenue decreased 6% and Commercial net revenue increased 18%. Total units were down 17% with Notebooks units down 23% and Desktops units up 11%.
• Printing net revenue was $5.0 billion, down 7% year over year (down 6% in constant currency) with a 19.3% operating margin. Consumer net revenue was down 12% and Commercial net revenue was down 4%. Supplies net revenue was down 6% (down 6% in constant currency). Total hardware units were down 23% with Consumer units down 24% and Commercial units down 17%.

Outlook

For the fiscal 2022 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.91 to $0.96 and non-GAAP diluted net EPS to be in the range of $1.03 to $1.08. Fiscal 2022 third quarter non-GAAP diluted net EPS estimates exclude $0.12 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, Russia 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 is updating its estimate of GAAP diluted net EPS to be in the range of $3.79 to $3.93 and raising its previous estimate of non-GAAP diluted net EPS to be in the range of $4.24 to $4.38. Fiscal 2022 non-GAAP diluted net EPS estimates exclude $0.45 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, Russia 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 a free cash flow of at least $4.5 billion.

Related:

• HP Reports Strong Growth in Q1 2022
• HP Reports Growth in Q4 and FY 2021
• HP Reports Growth in Q3
• HP Reports Double-digit Growth for Q2
• HP Reports Strong Growth for Q1

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