HP announced fiscal 2020 net revenue of $56.6 billion, down 3.6% (down 2.3% in constant currency) from the prior-year period.
Fiscal 2020 GAAP diluted net EPS was $2.00, down from $2.07 in the prior-year period and above the previously provided outlook of $1.83 to $1.87.
Fourth quarter net revenue was $15.3 billion, down 1% (up 0.1% in constant currency) from the prior-year period and up 7% sequentially.
Fourth quarter GAAP diluted net EPS was $0.49, up from $0.26 in the prior-year period and above the previously provided outlook of $0.32 to $0.36.
“We closed out a strong quarter with a beat on the top and bottom line. The strength of our innovation with the rigor of our execution drove sequential growth in revenue, operating profit, non-GAAP EPS and cash flow,” said Enrique Lores, president and CEO, HP Inc. “We had record unit shipments in the quarter, reflecting the important role HP technology is playing in the lives of our customers. Our results give us great confidence in our ability to drive long-term growth and shareholder value in 2021 and beyond.”
Asset Management
HP generated $4.3 billion in net cash provided by operating activities and $3.9 billion of free cash flow in fiscal 2020. Free cash flow includes net cash provided by operating activities of $4.3 billion adjusted for net investments in leases of $152 million and net investments in property, plant and equipment of $577 million.
HP utilized $3,107 million of cash during fiscal 2020 to repurchase approximately 166 million shares of common stock in the open market. When combined with the $997 million of cash used to pay dividends, HP returned 105% of its free cash flow to shareholders in fiscal 2020.
Fiscal 2020 Fourth Quarter Segment Results
Personal Systems net revenue was $10.4 billion, flat year over year (up 1% in constant currency) with a 5.1% operating margin. Consumer net revenue increased 24% and Commercial net revenue decreased 12%. Total units were up 7% with Notebooks units up 25% and Desktops units down 31%.
Printing net revenue was $4.8 billion, down 3% year over year (down 2% in constant currency) with a 14.8% operating margin. Total hardware units were up 14% with Consumer hardware units up 18% and Commercial hardware units down 10%. Supplies net revenue was down 1% (flat in constant currency).
