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Apr 30, 2022

HP Q2 2022 Earnings Report

HP reported solid revenue and non-GAAP EPS growth, returning significant capital to shareholders.

Key Takeaways

HP Inc. reported fiscal 2022 second quarter net revenue of $16.5 billion, up 3.9% year over year. Second quarter GAAP diluted net EPS was $0.94, and non-GAAP diluted net EPS was $1.08.

Second quarter GAAP diluted net earnings per share of $0.94.

Second quarter non-GAAP diluted net EPS of $1.08.

Second quarter net revenue of $16.5 billion, up 3.9% from the prior-year period.

Second quarter free cash flow of $0.4 billion.

Total Revenue
$16.5B
Previous year: $15.9B
+3.9%
EPS
$1.08
Previous year: $0.93
+16.1%
GAAP Operating Margin
7.8%
Previous year: 8.6%
-9.3%
Non-GAAP Operating Margin
1,444,000,000%
Previous year: 9.1%
+15868131768.1%
Gross Profit
$3.33B
Previous year: $3.44B
-3.1%
Cash and Equivalents
$4.48B
Previous year: $3.42B
+30.8%
Free Cash Flow
$400M
Previous year: $1.3B
-69.2%
Total Assets
$39.9B
Previous year: $34.5B
+15.5%

HP

HP

HP Revenue by Segment

Forward Guidance

For the fiscal 2022 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.91 to $0.96 and non-GAAP diluted net EPS to be in the range of $1.03 to $1.08. For fiscal 2022, HP is updating its estimate of GAAP diluted net EPS to be in the range of $3.79 to $3.93 and raising its previous estimate of non-GAAP diluted net EPS to be in the range of $4.24 to $4.38. For fiscal 2022, HP anticipates generating free cash flow of at least $4.5 billion.

Positive Outlook

  • Estimates GAAP diluted net EPS to be in the range of $0.91 to $0.96 for Q3 2022.
  • Estimates non-GAAP diluted net EPS to be in the range of $1.03 to $1.08 for Q3 2022.
  • Updating estimate of GAAP diluted net EPS to be in the range of $3.79 to $3.93 for fiscal year 2022.
  • Raising previous estimate of non-GAAP diluted net EPS to be in the range of $4.24 to $4.38 for fiscal year 2022.
  • Anticipates generating free cash flow of at least $4.5 billion for fiscal year 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income