HP Inc. Reports Fiscal 1Q 2021 Results

HP had a successful first quarter in 2021, with net revenue of $15.6 billion, up 7% from the prior-year period, first quarter net cash provided by operating activities of $1 billion, and free cash flow of $0.9 billion.

First quarter GAAP diluted net EPS was $0.83, significantly higher than $0.46 in the prior-year period and above the previously provided outlook of $0.58 to $0.64. First quarter non-GAAP diluted net EPS was $0.92, up from $0.65 in the prior-year period and above the previously provided outlook of $0.64 to $0.70.

“It was an exceptional start to the year with strong revenue, profit, and EPS growth. The strength of our portfolio and diversity of our businesses is driving our performance and positioning HP well for the future,” said Enrique Lores, HP president and CEO. “Simply put, we are doing what we said we would do – and our strategy is working.”

HP’s net cash provided by operating activities in the first quarter of fiscal 2021 was $1 billion. HP generated $0.9 billion of free cash flow in the first quarter.

HP’s dividend payment of $0.1938 per share in the first quarter resulted in cash usage of $250 million. HP also utilized $1,378 million of cash during the quarter to repurchase approximately 60.2 million shares of common stock in the open market. As a result, HP returned 179% of its first quarter free cash flow to shareholders. HP exited the quarter with $4.2 billion in gross cash, which includes cash and cash equivalents.

Personal Systems net revenue was $10.6 billion, up 7% year over year with a 7.1% operating margin. Printing net revenue was $5 billion, up 7% year over year with a 19.8% operating margin.