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Apr 30, 2023

HP Q2 2023 Earnings Report

HP reported mixed results with EPS above outlook but revenue down year-over-year.

Key Takeaways

HP Inc. reported fiscal 2023 second quarter results with net revenue of $12.9 billion, a 21.7% decrease year-over-year. GAAP diluted net EPS was $1.07, while non-GAAP diluted net EPS was $0.80. The company generated $0.5 billion in free cash flow and returned $0.3 billion to shareholders in dividends.

GAAP diluted net EPS was $1.07, exceeding the previously provided outlook.

Non-GAAP diluted net EPS was $0.80, within the previously provided outlook.

Net revenue was $12.9 billion, down 21.7% from the prior-year period.

Free cash flow was $0.5 billion for the quarter.

Total Revenue
$12.9B
Previous year: $16.5B
-21.7%
EPS
$0.8
Previous year: $1.08
-25.9%
GAAP Operating Margin
5.9%
Previous year: 7.8%
-24.4%
Non-GAAP Operating Margin
8.7%
Previous year: 1,444,000,000%
-100.0%
Cash dividends declared per share
$0.263
Gross Profit
$2.93B
Previous year: $3.33B
-12.1%
Cash and Equivalents
$1.94B
Previous year: $4.48B
-56.7%
Free Cash Flow
$500M
Previous year: $400M
+25.0%
Total Assets
$36.4B
Previous year: $39.9B
-8.9%

HP

HP

HP Revenue by Segment

Forward Guidance

For the fiscal 2023 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.61 to $0.71 and non-GAAP diluted net EPS to be in the range of $0.81 to $0.91. For fiscal 2023, HP estimates GAAP diluted net EPS to be in the range of $2.91 to $3.11 and non-GAAP diluted net EPS to be in the range of $3.30 to $3.50. For fiscal 2023, HP anticipates generating free cash flow in the range of $3.0 to $3.5 billion.

Positive Outlook

  • GAAP diluted net EPS to be in the range of $0.61 to $0.71 for Q3 2023.
  • Non-GAAP diluted net EPS to be in the range of $0.81 to $0.91 for Q3 2023.
  • GAAP diluted net EPS to be in the range of $2.91 to $3.11 for fiscal year 2023.
  • Non-GAAP diluted net EPS to be in the range of $3.30 to $3.50 for fiscal year 2023.
  • Free cash flow in the range of $3.0 to $3.5 billion for fiscal year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income