11.28.22
HP reported its fiscal 2022 full year and fourth quarter results. Key highlights include:
• Fiscal 2022 GAAP diluted net earnings per share (EPS) of $3.05, below the previously provided outlook of $3.46 to $3.56 per share.
• Fiscal 2022 non-GAAP diluted net EPS of $4.08, within the previously provided outlook of $4.02 to $4.12 per share.
• Fiscal 2022 net revenue of $63.0 billion, down 0.8% from the prior-year period.
• Fiscal 2022 net cash provided by operating activities of $4.5 billion, free cash flow of $3.9 billion.
• Fiscal 2022 returned $5.3 billion to shareholders in the form of share repurchases and dividends.
• Fourth quarter GAAP diluted net EPS was negligible, below the previously provided outlook of $0.44 to $0.54 per share, due to one-time non-cash tax adjustments
• Fourth quarter non-GAAP diluted net EPS of $0.85, within the previously provided outlook of $0.79 to $0.89 per share.
• Fourth quarter net revenue of $14.8 billion, down 11.2% from the prior-year period.
• Fourth quarter net cash provided by operating activities of $1.9 billion, free cash flow of $1.8 billion.
• Fourth quarter returned $1.0 billion to shareholders in the form of share repurchases and dividends.
• HP Inc. announces dividend increase of 5%.
• HP Inc. announces Future Ready Transformation Plan, estimates annualized gross run rate cost savings of at least $1.4 billion by the end of fiscal 2025, and restructuring and other charges of approximately $1.0 billion.
HP Inc. and its subsidiaries announced fiscal 2022 net revenue of $63 billion, down 0.8% (up 0.7% in constant currency) from the prior-year period.
Fourth quarter net revenue was $14.8 billion, down 11.2% (down 8.0% in constant currency) from the prior-year period.
“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half. In Q4 we delivered on our non-GAAP EPS target, while also completing our three-year value creation plan and exceeding our key metrics," said Enrique Lores, HP president and CEO. “Looking forward, the new Future Ready strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future.”
HP generated $4.5 billion in net cash provided by operating activities and $3.9 billion of free cash flow in fiscal 2022. Free cash flow includes net cash provided by operating activities of $4.5 billion adjusted for net investments in leases of $155 million and net investments in property, plant and equipment of $765 million.
HP utilized $4.3 billion of cash during fiscal 2022 to repurchase approximately 126 million shares of common stock in the open market. When combined with the $1.0 billion of cash used to pay dividends, HP returned 138% of its free cash flow to shareholders in fiscal 2022.
HP's net cash provided by operating activities in the fourth quarter of fiscal 2022 was $1.9 billion. HP generated $1.8 billion of free cash flow in the fourth quarter.
Fiscal 2022 fourth quarter segment results:
• Personal Systems net revenue was $10.3 billion, down 13% year over year (down 9% in constant currency) with a 4.5% operating margin. Consumer net revenue decreased 25% and Commercial net revenue decreased 6%. Total units were down 21% with Notebooks units down 26% and Desktops units down 3%.
• Printing net revenue was $4.5 billion, down 7% year over year (down 6% in constant currency) with a 19.9% operating margin. Total hardware units were down 3% with Consumer units down 4% and Commercial units up 5%. Consumer net revenue was down 7% and Commercial net revenue was up 1%. Supplies net revenue was down 10% (down 10% in constant currency).
• Fiscal 2022 GAAP diluted net earnings per share (EPS) of $3.05, below the previously provided outlook of $3.46 to $3.56 per share.
• Fiscal 2022 non-GAAP diluted net EPS of $4.08, within the previously provided outlook of $4.02 to $4.12 per share.
• Fiscal 2022 net revenue of $63.0 billion, down 0.8% from the prior-year period.
• Fiscal 2022 net cash provided by operating activities of $4.5 billion, free cash flow of $3.9 billion.
• Fiscal 2022 returned $5.3 billion to shareholders in the form of share repurchases and dividends.
• Fourth quarter GAAP diluted net EPS was negligible, below the previously provided outlook of $0.44 to $0.54 per share, due to one-time non-cash tax adjustments
• Fourth quarter non-GAAP diluted net EPS of $0.85, within the previously provided outlook of $0.79 to $0.89 per share.
• Fourth quarter net revenue of $14.8 billion, down 11.2% from the prior-year period.
• Fourth quarter net cash provided by operating activities of $1.9 billion, free cash flow of $1.8 billion.
• Fourth quarter returned $1.0 billion to shareholders in the form of share repurchases and dividends.
• HP Inc. announces dividend increase of 5%.
• HP Inc. announces Future Ready Transformation Plan, estimates annualized gross run rate cost savings of at least $1.4 billion by the end of fiscal 2025, and restructuring and other charges of approximately $1.0 billion.
HP Inc. and its subsidiaries announced fiscal 2022 net revenue of $63 billion, down 0.8% (up 0.7% in constant currency) from the prior-year period.
Fourth quarter net revenue was $14.8 billion, down 11.2% (down 8.0% in constant currency) from the prior-year period.
“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half. In Q4 we delivered on our non-GAAP EPS target, while also completing our three-year value creation plan and exceeding our key metrics," said Enrique Lores, HP president and CEO. “Looking forward, the new Future Ready strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future.”
HP generated $4.5 billion in net cash provided by operating activities and $3.9 billion of free cash flow in fiscal 2022. Free cash flow includes net cash provided by operating activities of $4.5 billion adjusted for net investments in leases of $155 million and net investments in property, plant and equipment of $765 million.
HP utilized $4.3 billion of cash during fiscal 2022 to repurchase approximately 126 million shares of common stock in the open market. When combined with the $1.0 billion of cash used to pay dividends, HP returned 138% of its free cash flow to shareholders in fiscal 2022.
HP's net cash provided by operating activities in the fourth quarter of fiscal 2022 was $1.9 billion. HP generated $1.8 billion of free cash flow in the fourth quarter.
Fiscal 2022 fourth quarter segment results:
• Personal Systems net revenue was $10.3 billion, down 13% year over year (down 9% in constant currency) with a 4.5% operating margin. Consumer net revenue decreased 25% and Commercial net revenue decreased 6%. Total units were down 21% with Notebooks units down 26% and Desktops units down 3%.
• Printing net revenue was $4.5 billion, down 7% year over year (down 6% in constant currency) with a 19.9% operating margin. Total hardware units were down 3% with Consumer units down 4% and Commercial units up 5%. Consumer net revenue was down 7% and Commercial net revenue was up 1%. Supplies net revenue was down 10% (down 10% in constant currency).
