HP reports third-quarter revenue up 7%

HP Inc. announced fiscal 2021 third-quarter net revenue of $15.3 billion, up 7.0% (up 4.1% in constant currency) from the prior-year period.

“Strong and sustained demand for our technology drove another quarter of top and bottom-line growth and we more than doubled non-GAAP EPS year over year,” said Enrique Lores, president and CEO, HP. “We are performing while we are transforming our business models and service offerings to accelerate growth opportunities across our portfolio. The evolving hybrid world is driving innovation and market expansion for HP and we are well-positioned to capitalize on trends in our markets.”

Printing net revenue was $4.9 billion, up 24% year over year with a 17.6% operating margin. Total hardware units were down 4% overall, with Consumer units down 8% and Commercial units up 29%. Consumer net revenue was up 15% and Commercial net revenue was up 46%. Supplies net revenue was up 20% (up 19% in constant currency).

 

HP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)

Three months ended
July 31, 2021 April 30, 2021 July 31, 2020
Net revenue $ 15,289 $ 15,877 $ 14,294
Costs and expenses:
Cost of revenue 11,901 12,437 11,901
Research and development 477 514 359
Selling, general and administrative 1,408 1,483 1,156
Restructuring and other charges 56 39 59
Acquisition-related charges 24 10 11
Amortization of intangible assets 42 32 29
Total costs and expenses 13,908 14,515 13,515
Earnings from operations 1,381 1,362 779
Interest and other, net (55 ) (26 ) (28 )
Earnings before taxes 1,326 1,336 751
Provision for taxes (218 ) (108 ) (17 )
Net earnings $ 1,108 $ 1,228 $ 734
Net earnings per share:
Basic $ 0.94 $ 1.00 $ 0.52
Diluted $ 0.92 $ 0.98 $ 0.52
Cash dividends declared per share $ 0.39 $ $ 0.35
Weighted-average shares used to compute net earnings per share:
Basic 1,185 1,234 1,417
Diluted 1,199 1,247 1,423