POST Online Media Lite Edition



 

HP Inc. GAAP diluted net EPS down significantly, to eliminate between 4,000 and 6,000 jobs

Christian Fernsby |
HP Inc. and its subsidiaries announced fiscal 2022 net revenue of $63.0 billion, down 0.8% (up 0.7% in constant currency) from the prior-year period.

Article continues below




Fiscal 2022 GAAP diluted net EPS was $3.05, down from $5.33 in the prior-year period and below the previously provided outlook of $3.46 to $3.56.

Fiscal 2022 non-GAAP diluted net EPS was $4.08, up from $3.79 in the prior-year period and within the previously provided outlook of $4.02 to $4.12.

Fiscal 2022 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $1.1 billion, or $1.03 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, Russia exit charges, non-operating retirement-related (credits)/charges, and tax adjustments.

Fourth quarter net revenue was $14.8 billion, down 11.2% (down 8.0% in constant currency) from the prior-year period.

Fourth quarter GAAP diluted net EPS was negligible, down from $2.71 in the prior-year period and below the previously provided outlook of $0.44 to $0.54, due to one-time non-cash tax adjustments.

Fourth quarter non-GAAP diluted net EPS was $0.85, down from $0.94 in the prior-year period and within the previously provided outlook of $0.79 to $0.89.

Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $857 million, or $0.85 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, Russia exit charges, non-operating retirement-related (credits)/charges, and tax adjustments.

HP generated $4.5 billion in net cash provided by operating activities and $3.9 billion of free cash flow in fiscal 2022. Free cash flow includes net cash provided by operating activities of $4.5 billion adjusted for net investments in leases of $155 million and net investments in property, plant and equipment of $765 million. HP utilized $4.3 billion of cash during fiscal 2022 to repurchase approximately 126 million shares of common stock in the open market. When combined with the $1.0 billion of cash used to pay dividends, HP returned 138% of its free cash flow to shareholders in fiscal 2022.

HP's net cash provided by operating activities in the fourth quarter of fiscal 2022 was $1.9 billion. Accounts receivable ended the quarter at $4.5 billion, up 1 day quarter over quarter to 28 days. Inventory ended the quarter at $7.6 billion, down 6 days quarter over quarter to 57 days. Accounts payable ended the quarter at $15.3 billion, down 5 days quarter over quarter to 114 days.

HP generated $1.8 billion of free cash flow in the fourth quarter. Free cash flow includes net cash provided by operating activities of $1.9 billion adjusted for net investments in leases of $61 million and net investments in property, plant and equipment of $144 million.

HP’s dividend payment of $0.25 per share in the fourth quarter resulted in cash usage of $0.2 billion. HP utilized $0.8 billion of cash during the quarter to repurchase approximately 26.6 million shares of common stock in the open market. As a result, HP returned 55% of its fourth quarter free cash flow to shareholders. HP exited the quarter with $3.2 billion in gross cash, which includes cash and cash equivalents and short-term investments of $17 million.

The HP board of directors has declared a quarterly cash dividend of $0.2625 per share on the company’s common stock, payable on January 4, 2023. This is an increase of 5% from the prior dividend.

For the fiscal 2023 first quarter, HP estimates GAAP diluted net EPS to be in the range of $0.47 to $0.57 and non-GAAP diluted net EPS to be in the range of $0.70 to $0.80. Fiscal 2023 first quarter non-GAAP diluted net EPS estimates exclude $0.23 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

For fiscal 2023, HP estimates GAAP diluted net EPS to be in the range of $2.22 to $2.62 and non-GAAP diluted net EPS to be in the range of $3.20 to $3.60.

Fiscal 2023 non-GAAP diluted net EPS estimates exclude $0.98 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items. For fiscal 2023, HP anticipates generating free cash flow in the range of $3.0 to $3.5 billion.

Today, HP Inc. announced a fiscal year 2023 Future Ready Transformation plan, driving significant structural cost savings through digital transformation, portfolio optimization and operational efficiency.

The company estimates that these actions will result in annualized gross run rate savings of at least $1.4 billion by the end of fiscal 2025.

The company estimates that it will incur approximately $1.0 billion in labor and non-labor costs related to restructuring and other charges, with approximately $0.6 billion in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025.

The company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025.


What to read next

Akamai Technologies Q4 revenue 23% better
Hewlett Packard Enterprise Q1 net revenue decreased 3%
Hewlett-Packard Q3 diluted EPS down 9.6%, expects Q4 to be even worse

U.S.: Locally heavy rain and snow

 
A slow-moving front draped across the south-central portion of the CONUS continues to focus much of the active weather over the CONUS, and will continue to do for the next several days.
 
 

Latest

Epiphone announced seven Adam Jones Art Collection Les Paul Custom models
Canada’s first all-electric vehicle manufacturing facility opens in Ontario
Walmart to pay Massachusetts $500,000 as part of alleged drug pricing violations
Canon Europe promotes Hiro Imamura to EVP, digital printing & solutions

NEWS

Croatian MiG-21 crashed, both pilots survived

EPPO’s Paris office investigates French former MEP and assistant on suspicion of fictitious employment
Virginity testing, virginity certification and hymen reconstruction surgery to be criminalised in Sweden
UK rail walkouts confirmed over Christmas period
Russian state bank VTB hit by DDoS attack
6.2 magnitude earthquake jolts western Indonesia
 

BUSINESS

Deal on new law to ensure products causing deforestation are not sold in EU

NHS plans to return retired and partially retired staff to work
Germany approves tax benefits for small solar installations
Payday loans market to reach $6.8 billion
U.S. preliminarily finds some companies circumventing solar tariffs
Switzerland watchdog investigates labour market in banking sector
 

Trending Now

Asuncion, Mother of Cities and Paraguay’s center of culture, music and shopping

Epiphone announced seven Adam Jones Art Collection Les Paul Custom models

Walmart to pay Massachusetts $500,000 as part of alleged drug pricing violations

Canon Europe promotes Hiro Imamura to EVP, digital printing & solutions


POLITICS

Thousand of Moldova's households to get higher compensations when paying bills

FM: Hungary received exemption from using oil price cap
Commission approves €26.3 million Finnish measure to support SEVO in construction of hydroelectric pump storage
Five Polish regions to get €3.85 billion for just transition toward climate neutral economy
Jordan, Norway to partner on renewable energy, green hydrogen
Colorado submits Canadian drug importation plan to FDA
 

Today We Recommend

Payday loans market to reach $6.8 billion


Highlights 

Asda targets 300 new convenience stores creating 10,000 jobs in UK

Becker Robotic Equipment will create 137 new jobs in Cherokee County, Georgia

Iran’s shrimp exports to Russia up by 350% this year


COMPANIES

Asda targets 300 new convenience stores creating 10,000 jobs in UK

Illumina gets EU antitrust charge sheet to unwind Grail acquisition swiftly
Owens Corning completes sale of Russian operations
Milence charging network accelerates Europe's shift to fossil-free road transport
TotalEnergies to supply sustainable aviation fuel to Air France-KLM
Becker Robotic Equipment will create 137 new jobs in Cherokee County, Georgia
 

CAREERS

BioMar appoints Andrew Campbell as CEO for AQ1

Roche appoints Brad Moore as CEO of Roche Diagnostics North America
Duke Energy chief operating officer Dhiaa Jamil to retire
MSC Industrial Supply elects Rahquel Purcell as director
Boeing appoints Brendan Nelson as Boeing International
Totally appoints John McMullan as medical director
 

ECONOMY

Germany factory orders recover on foreign demand

South Africa's Q3 GDP grows 1.6%
World Bank hikes Philippines' 2022 GDP forecast to 7.2 pct
CBI severely downgrades UK growth forecast
Japan services PMI continued to expand in November
Italy: GDP growth loses momentum in Q3
 

EARNINGS

AutoZone Q1 net income decreased to $539.32 million

Genesco Q3 2023 GAAP earnings $1.66
Kirkland's Q3 sales $131.0 million
Cracker Barrel Old Country Store Q1 2023 revenue $839.5 million
Malvern Bancorp Q4 net income $2.6 million
Big Lots Q3 loss $4.33 million
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Rospotrebnadzor: Swine flu reported in 74 Russian regions

Hong Kong Customs detects suspected frozen meat smuggling case involving cargo vessel
First direct train from Laos to China arrives with 543 tons of fruit
Vets cull 15,000 ducks in Czech Republic over bird flu outbreak
Hong Kong suspends poultry meat and products import from areas in Canada
China interested in importing Kazakh agricultural products
 

LEADERSHIP

Only 32% of employees believe their pay is fair

Corporate duty waivers limit organic company growth and innovation
Women buy from women, men buy from women and men
How employee opinion impacts CEO dismissal
Keeping it in family can be good news when it comes to CEOs
Over a third of office workers are hybrid 'misfits'
 

CRIME

AT&T settles SEC charge of selectively disclosing material information to Wall St. analysts

Hertz to pay $168 mln to settle over 95% of wrongful theft report claims
Glencore to pay Republic of Congo $180 mln over alleged corruption claims
Fraudsters target water infrastructure projects, OLAF closes several cases
Rhode Island man to pay more than $2.8 million in restitution for virtual currency fraud
Switzerland fines ABB $4.3 mn over South Africa bribery
 

Magazine

TRAVEL

Cambria Hotels opens in Minneapolis

All aboard the Heathrow Festive Express
Asuncion, Mother of Cities and Paraguay’s center of culture, music and shopping
"Pets with Love" Dog Adoption Carnival 2022 to be held in Hong Kong
Weather-resistant ArtWalk Downtown Billings, Montana
Dual branded Courtyard and Residence Inn by Marriott Hotel opens in Montreal
 

SEA, LAND, AIR

Lamborghini Huracán Sterrato, first super sports car for any terrain

New colorful Porsche 718 Style Edition models
2023 Toyota Prius Prime, solar panel roof and reliability
Volvo EX90, a car with updates
Cessna Citation CJ4 Gen2 jet, pursue your business goals while enjoying journey
GMC first Sierra EV marks turning point
 

DESIGN

Patchwork carpets, vintage Persian carpets made with unparalleled skill

Real life wallpapers, perfectly executed
A. Lange & Söhne, men's watches with true Saxonian DNA
Nella Vetrina, luxurious Italian designers bathroom vanities and furniture
Karastan rugs, durable and beautiful
Leather bags for every occasion and every life style
 

GADGETS

ASUS launches ExpertBook B9 for executives

Take Elektor Fortissimo and make your own high-end amplifier
RangeXTD, a Wi-Fi extender that actually works
Monitor II A.N.C. headphones, iconic Marshall sound
Zebra TC15, a clever mix of a mobile phone and a computer for business use
Bathroom speakers will make your relaxing even better
 

HEALTH

Justice Department secures agreement with Alabama Medicaid to remove unlawful sobriety mandate for health care access

Pfizer and BioNTech apply for FDA authorization for Omicron-retooled vaccine booster in kids under 5
Cornwall first area in England to trial NHS Digital Health Check
Huge rise of scarlet fever cases in UK, 6 kids dead of Strep A
Neglecting COVID this year created perfect conditions for deadly new variant
EMA recommends withdrawal of pholcodine medicines from EU market
 

MEANTIME

Mars is more active than previously thought

James Webb telescope produces an unparalleled view of the ghostly light in galaxy clusters
China's two meteorological satellites put into operation
Lagoon dries up as drought grips Peru
Mysteriously bright flash is black hole jet pointing straight toward Earth
Researchers discover Egypt's oldest tomb oriented to winter solstice