HP Reports Strong Growth in Q1 2022

HP Reports Strong Growth in Q1 2022

According to HP, its net revenue turned out to be $17.0 billion in the first quarter of 2022 (Q1, 2022), up 8.8% (up 8.2% in constant currency) from the same period last year.

“We once again delivered strong top and bottom-line results with record revenue driven by strong demand and our leadership in hybrid,” said Enrique Lores, HP President and CEO. “Our Q1 performance was particularly strong across our key growth areas that collectively grew double-digit including gaming, peripherals, workforce solutions, consumer subscriptions, and industrial graphics and 3D. Our performance reflects progress against our strategy to build a stronger HP.”

Some highlights include:

• GAAP diluted net EPS was $0.99, up from $0.83 in the prior-year period and above the previously provided outlook of $0.92 to $0.98.
• Non-GAAP diluted net EPS was $1.10, up from $0.92 in the prior-year period and above the previously provided outlook of $0.99 to $1.05.
• Non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $117 million, or $0.11 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, and tax adjustments.
• Net cash provided by operating activities in the first quarter of fiscal 2022 was $1.7 billion.
• Free cash flow was $1.4 billion in the first quarter.
• The dividend payment was $0.25 per share resulting in cash usage of $0.3 billion.
• HP returned 127% of its free cash flow to shareholders.
• Gross cash was $3.4 billion, which includes cash and cash equivalents, and short-term investments of $5 million.

By segment, HP’s Printing net revenue was $4.8 billion, down 4% year over year (down 5% in constant currency) with a 18.2% operating margin. Consumer net revenue was down 23% and Commercial net revenue was up 9%. Supplies net revenue was down 2% (down 3% in constant currency). Total hardware units were down 28% overall, with Consumer units down 31% and Commercial units down 3%.  

Outlook

For the fiscal 2022 second quarter, HP estimates GAAP diluted net EPS to be in the range of $0.95 to $1.01 and non-GAAP diluted net EPS to be in the range of $1.02 to $1.08. Fiscal 2022 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 is updating its estimate of GAAP diluted net EPS to be in the range of $3.87 to $4.07 and raising its previous estimate of non-GAAP diluted net EPS to be in the range of $4.18 to $4.38. Fiscal 2022 non-GAAP diluted net EPS estimates exclude $0.31 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.

More information at investor.hp.com.

Related:

• 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
• HP Reveals 2022 Outlook

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