HP reports second-quarter revenue up
HP Inc. announced fiscal 2022 second-quarter net revenue of $16.5 billion, up 3.9% from the prior-year period. Net earnings declined to $1 billion, compared to 1.086 billion for the same period last year.
“We delivered a solid quarter of revenue and non-GAAP EPS growth, while returning significant capital to shareholders,” said Enrique Lores, HP President and CEO. “Collectively, our key growth businesses grew double digits and drove $5.6 billion in revenue in the first half of the year. Our consistent performance in the face of a volatile macro environment gives us confidence in our plans to build a stronger HP.”
HP fiscal 2022 second quarter segment results
- Personal Systems net revenue was $11.5 billion, up 9% year over year (up 11% in constant currency) with a 6.9% operating margin. Consumer net revenue decreased 6% and Commercial net revenue increased 18%. Total units were down 17% with Notebooks units down 23% and Desktops units up 11%.
- Printing net revenue was $5.0 billion, down 7% year over year (down 6% in constant currency) with a 19.3% operating margin. Consumer net revenue was down 12% and Commercial net revenue was down 4%. Supplies net revenue was down 6% (down 6% in constant currency). Total hardware units were down 23% with Consumer units down 24% and Commercial units down 17%.
| HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) |
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| Three months ended | |||||||||||
| April 30, 2022 | January 31, 2022 | April 30, 2021 | |||||||||
| Net revenue | $ | 16,490 | $ | 17,028 | $ | 15,877 | |||||
| Costs and expenses: | |||||||||||
| Cost of revenue | 13,157 | 13,643 | 12,437 | ||||||||
| Research and development | 425 | 418 | 514 | ||||||||
| Selling, general and administrative | 1,464 | 1,468 | 1,483 | ||||||||
| Restructuring and other charges | 82 | 68 | 39 | ||||||||
| Acquisition-related charges | 32 | 20 | 10 | ||||||||
| Amortization of intangible assets | 52 | 52 | 32 | ||||||||
| Total costs and expenses | 15,212 | 15,669 | 14,515 | ||||||||
| Earnings from operations | 1,278 | 1,359 | 1,362 | ||||||||
| Interest and other, net | (39 | ) | (32 | ) | (26 | ) | |||||
| Earnings before taxes | 1,239 | 1,327 | 1,336 | ||||||||
| Provision for taxes | (239 | ) | (241 | ) | (108 | ) | |||||
| Net earnings | $ | 1,000 | $ | 1,086 | $ | 1,228 | |||||
| Net earnings per share: | |||||||||||
| Basic | $ | 0.95 | $ | 1.00 | $ | 1.00 | |||||
| Diluted | $ | 0.94 | $ | 0.99 | $ | 0.98 | |||||
| Cash dividends declared per share | $ | — | $ | 0.50 | $ | — | |||||
| Weighted-average shares used to compute net earnings per share: | |||||||||||
| Basic | 1,050 | 1,081 | 1,234 | ||||||||
| Diluted | 1,062 | 1,094 | 1,247 | ||||||||
.
| HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) |
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| Six months ended | |||||||
| April 30, 2022 | April 30, 2021 | ||||||
| Net revenue | $ | 33,518 | $ | 31,523 | |||
| Costs and expenses: | |||||||
| Cost of revenue | 26,800 | 24,759 | |||||
| Research and development | 843 | 985 | |||||
| Selling, general and administrative | 2,932 | 2,859 | |||||
| Restructuring and other charges | 150 | 160 | |||||
| Acquisition-related charges | 52 | 16 | |||||
| Amortization of intangible assets | 104 | 61 | |||||
| Total costs and expenses | 30,881 | 28,840 | |||||
| Earnings from operations | 2,637 | 2,683 | |||||
| Interest and other, net | (71 | ) | (51 | ) | |||
| Earnings before taxes | 2,566 | 2,632 | |||||
| Provision for taxes | (480 | ) | (336 | ) | |||
| Net earnings | $ | 2,086 | $ | 2,296 | |||
| Net earnings per share: | |||||||
| Basic | $ | 1.96 | $ | 1.82 | |||
| Diluted | $ | 1.94 | $ | 1.81 | |||
| Cash dividends declared per share | $ | 0.50 | $ | 0.39 | |||
| Weighted-average shares used to compute net earnings per share: | |||||||
| Basic | 1,066 | 1,260 | |||||
| Diluted | 1,078 | 1,270 | |||||
| HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions) |
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| Three months ended | Change (%) | ||||||||||||||
| April 30, 2022 | January 31, 2022 | April 30, 2021 | Q/Q | Y/Y | |||||||||||
| Net revenue: | |||||||||||||||
| Notebooks | $ | 7,734 | $ | 8,421 | $ | 7,489 | (8)% | 3% | |||||||
| Desktops | 2,855 | 2,807 | 2,225 | 2% | 28% | ||||||||||
| Workstations | 494 | 534 | 407 | (7)% | 21% | ||||||||||
| Other | 449 | 434 | 434 | 3% | 3% | ||||||||||
| Personal Systems | 11,532 | 12,196 | 10,555 | (5)% | 9% | ||||||||||
| Supplies | 3,131 | 3,068 | 3,337 | 2% | (6)% | ||||||||||
| Commercial | 1,042 | 1,039 | 1,085 | —% | (4)% | ||||||||||
| Consumer | 790 | 724 | 901 | 9% | (12)% | ||||||||||
| Printing | 4,963 | 4,831 | 5,323 | 3% | (7)% | ||||||||||
| Corporate Investments(a) | — | 1 | 1 | NM | NM | ||||||||||
| Total segment net revenue | 16,495 | 17,028 | 15,879 | (3)% | 4% | ||||||||||
| Other(a) | (5 | ) | — | (2 | ) | NM | NM | ||||||||
| Total net revenue | $ | 16,490 | $ | 17,028 | $ | 15,877 | (3)% | 4% | |||||||
| Earnings before taxes: | |||||||||||||||
| Personal Systems | $ | 798 | $ | 957 | $ | 710 | |||||||||
| Printing | 958 | 879 | 951 | ||||||||||||
| Corporate Investments | (52 | ) | (74 | ) | (35 | ) | |||||||||
| Total segment earnings from operations | 1,704 | 1,762 | 1,626 | ||||||||||||
| Corporate and unallocated cost and other | (190 | ) | (130 | ) | (108 | ) | |||||||||
| Stock-based compensation expense | (70 | ) | (133 | ) | (75 | ) | |||||||||
| Restructuring and other charges | (82 | ) | (68 | ) | (39 | ) | |||||||||
| Acquisition-related charges | (32 | ) | (20 | ) | (10 | ) | |||||||||
| Amortization of intangible assets | (52 | ) | (52 | ) | (32 | ) | |||||||||
| Interest and other, net | (39 | ) | (32 | ) | (26 | ) | |||||||||
| Total earnings before taxes | $ | 1,239 | $ | 1,327 | $ | 1,336 | |||||||||
(a) “NM” represents not meaningful.
| HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions) |
|||||||||
| Six months ended | Change (%) | ||||||||
| April 30, 2022 | April 30, 2021 | Y/Y | |||||||
| Net revenue: | |||||||||
| Notebooks | $ | 16,155 | $ | 14,855 | 9% | ||||
| Desktops | 5,662 | 4,625 | 22% | ||||||
| Workstations | 1,028 | 789 | 30% | ||||||
| Other | 883 | 889 | (1)% | ||||||
| Personal Systems | 23,728 | 21,158 | 12% | ||||||
| Supplies | 6,199 | 6,483 | (4)% | ||||||
| Commercial | 2,081 | 2,042 | 2% | ||||||
| Consumer | 1,514 | 1,842 | (18)% | ||||||
| Printing | 9,794 | 10,367 | (6)% | ||||||
| Corporate Investments(a) | 1 | 1 | NM | ||||||
| Total segment | 33,523 | 31,526 | 6% | ||||||
| Other(a) | (5 | ) | (3 | ) | NM | ||||
| Total net revenue | $ | 33,518 | $ | 31,523 | 6% | ||||
| Earnings before taxes: | |||||||||
| Personal Systems | $ | 1,755 | $ | 1,468 | |||||
| Printing | 1,837 | 1,949 | |||||||
| Corporate Investments | (126 | ) | (62 | ) | |||||
| Total segment earnings from operations | 3,466 | 3,355 | |||||||
| Corporate and unallocated cost and other | (320 | ) | (244 | ) | |||||
| Stock-based compensation expense | (203 | ) | (191 | ) | |||||
| Restructuring and other charges | (150 | ) | (160 | ) | |||||
| Acquisition-related charges | (52 | ) | (16 | ) | |||||
| Amortization of intangible assets | (104 | ) | (61 | ) | |||||
| Interest and other, net | (71 | ) | (51 | ) | |||||
| Total earnings before taxes | $ | 2,566 | $ | 2,632 | |||||
(a) “NM” represents not meaningful.