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Apr 30, 2020

HP Q2 2020 Earnings Report

HP's financial performance declined compared to the previous year, but EPS exceeded expectations.

Key Takeaways

HP Inc. reported a decrease in net revenue by 11.2% year-over-year to $12.5 billion. GAAP diluted net EPS was $0.53, above the previously provided outlook. The company faced challenges due to the COVID-19 pandemic but saw strong demand in notebook PC orders and Instant Ink subscriptions.

GAAP diluted net EPS of $0.53, above the previously provided outlook of $0.46 to $0.50 per share

Non-GAAP diluted net EPS of $0.51, within the previously provided outlook of $0.49 to $0.53 per share

Net revenue of $12.5 billion, down 11.2% from the prior-year period

Net cash used in operating activities of $(0.5) billion, free cash flow of $(0.6) billion

Total Revenue
$12.5B
Previous year: $14B
-11.2%
EPS
$0.51
Previous year: $0.53
-3.8%
GAAP Operating Margin
6.6%
Gross Profit
$2.49B
Previous year: $2.73B
-8.6%
Cash and Equivalents
$4.05B
Previous year: $3.56B
+14.0%
Free Cash Flow
-$600M
Total Assets
$33.8B
Previous year: $31.9B
+5.7%

HP

HP

HP Revenue by Segment

Forward Guidance

For the fiscal 2020 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.35 to $0.41 and non-GAAP diluted net EPS to be in the range of $0.39 to $0.45.

Revenue & Expenses

Visualization of income flow from segment revenue to net income