PALO ALTO, Calif., May 30, 2023 (GLOBE NEWSWIRE) -- HP (NYSE: HPQ)
- Second quarter GAAP diluted net earnings per share ("EPS") of $1.07, above the previously provided outlook of $0.40 to $0.50 per share
- Second quarter non-GAAP diluted net EPS of $0.80, within the previously provided outlook of $0.73 to $0.83 per share
- Second quarter net revenue of $12.9 billion, down 21.7% from the prior-year period
- Second quarter net cash provided by operating activities of $0.6 billion, free cash flow of $0.5 billion
- Second quarter returned $0.3 billion to shareholders in the form of dividends
| HP Inc.'s fiscal 2023 second quarter financial performance | |||||||||||||
| Q2 FY23 | Q2 FY22 | Y/Y | |||||||||||
| GAAP net revenue ($B) | $ | 12.9 | $ | 16.5 | (21.7)% | ||||||||
| GAAP operating margin | 5.9% | 7.8% | (1.9) pts | ||||||||||
| GAAP net earnings ($B) | $ | 1.1 | $ | 1.0 | 7% | ||||||||
| GAAP diluted net EPS | $ | 1.07 | $ | 0.94 | 14% | ||||||||
| Non-GAAP operating margin | 8.7% | 8.8% | (0.1) pts | ||||||||||
| Non-GAAP net earnings ($B) | $ | 0.8 | $ | 1.2 | (31)% | ||||||||
| Non-GAAP diluted net EPS | $ | 0.80 | $ | 1.08 | (26)% | ||||||||
| Net cash provided by operating activities ($B) | $ | 0.6 | $ | 0.5 | 25% | ||||||||
| Free cash flow ($B) | $ | 0.5 | $ | 0.4 | 54% | ||||||||
Notes to table
Information about HP Inc.'s use of non-GAAP financial information is provided under "Use of non-GAAP financial information" below.
Net revenue and EPS results
HP Inc. and its subsidiaries (“HP”) announced fiscal 2023 second quarter net revenue of $12.9 billion, down 21.7% (down 18.0% in constant currency) from the prior-year period.
“Our disciplined execution and strong innovation in a tough macro environment allowed us to deliver non-GAAP EPS at the high-end of our target in Q2,” said Enrique Lores, HP President and CEO. “We are well-positioned to win in our markets and drive long-term sustainable growth as we make continued progress against our Future Ready plan.”
Second quarter GAAP diluted net EPS was $1.07, up from $0.94 in the prior-year period and above the previously provided outlook of $0.40 to $0.50. Second quarter non-GAAP diluted net EPS was $0.80, down from $1.08 in the prior-year period and within the previously provided outlook of $0.73 to $0.83. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $(269) million, or $(0.27) per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related credits and tax adjustments.
Asset management
HP's net cash provided by operating activities in the second quarter of fiscal 2023 was $0.6 billion. Accounts receivable ended the quarter at $4.1 billion, up 1 day quarter over quarter to 29 days. Inventory ended the quarter at $7.2 billion, up 5 days quarter over quarter to 65 days. Accounts payable ended the quarter at $13.3 billion, up 10 days quarter over quarter to 120 days.
HP generated $0.5 billion of free cash flow in the second quarter. Free cash flow includes net cash provided by operating activities of $0.6 billion adjusted for net investments in leases of $35 million and net investments in property, plant and equipment of $130 million.
