Sina Technology News Beijing time on November 23 morning news, HP today released the company’s fiscal year 2022 fourth quarter and full-year financial report. According to the report, HP’s fourth-quarter net revenue was US$14.801 billion, down 11.2% from US$16.675 billion in the same period last year; its net loss was US$2 million, compared with a net profit of US$3.099 billion in the same period last year. Turned from profit to loss year-on-year; adjusted net profit not in accordance with US GAAP was US$900 million, a decrease of 21% compared with US$1.1 billion in the same period last year.
HP’s fourth-quarter revenue and adjusted earnings per share exceeded Wall Street analysts’ previous expectations, but its outlook for the first quarter and full-year adjusted earnings per share of fiscal 2023 failed to meet expectations. After the earnings report, HP shares rose nearly 1% after hours.
At the same time, HP announced that the company plans to lay off 4,000 to 6,000 employees over the next three years. As of October 2021, HP’s total workforce is about 51,000. In 2019, HP announced that the company would lay off 7,000 to 9,000 employees.
Summary of fourth-quarter results:
In the fiscal quarter ended October 31, 2022, HP’s net loss was US$2 million, compared with a net profit of US$3.099 billion in the same period last year, turning profit into a loss year-on-year. HP’s diluted loss per share was $0 in the fourth quarter, compared with $2.71 in diluted earnings per share in the same period last year.
Excluding one-time items (not in accordance with US GAAP), HP’s adjusted net income in the fourth quarter was $900 million, down 21% from $1.1 billion in the same period last year; adjusted earnings per share were $0.85 , a decrease of 10% compared with the US$0.94 in the same period last year, but this performance still slightly exceeded analysts’ previous expectations. According to data provided by financial information provider FactSet, analysts had expected HP’s fourth-quarter earnings per share to reach $0.84 on average.
HP’s fiscal fourth-quarter net income and non-GAAP earnings per share excluded an after-tax adjustment of $857 million and $0.85 per share, respectively, which was related to restructuring and other charges, M&A and divestiture charges, Intangible asset amortization charges, exit-related charges from the Russian market, non-operating retirement-related charges or credits, and tax adjustments.
HP’s fourth-quarter net revenue was $14.801 billion, down 11.2% from $16.675 billion in the same period last year; excluding the impact of exchange rate changes, HP’s fourth-quarter net revenue fell 8.0% from the same period last year, but This performance is still ahead of analysts had expected. According to data provided by FactSet, analysts had expected HP’s fourth-quarter net revenue to reach $14.69 billion on average.
According to US GAAP, HP’s fourth-quarter operating margin was 5.2%, down 2.2 percentage points from 7.4% in the same period last year. Excluding one-time items (non-GAAP), HP’s adjusted operating margin in the fourth quarter was 7.7%, down 0.4 percentage points from 8.1% in the same period last year.
Results of various divisions in the fourth fiscal quarter:
According to business divisions, HP Personal Systems Group’s revenue in the fourth quarter was US$10.267 billion, a decrease of 13% compared with US$11.795 billion in the same period last year, and a year-on-year decrease of 9% excluding the impact of exchange rate changes; The operating margin for the fourth quarter was 4.5%. Among them, the net revenue of the commercial sector decreased by 6% year-on-year, and the net revenue of the individual consumer sector decreased by 25% year-on-year; total shipments decreased by 21% year-on-year, of which notebook shipments decreased by 3% year-on-year, and desktop computer shipments decreased year-on-year 26%.
Within the Personal Systems Group, divided by product, HP’s net revenue from notebooks in the fourth quarter was US$6.454 billion, a decrease of 23% compared with US$8.339 billion in the same period last year; net revenue from desktops was 2.537 billion. billion, an increase of 1% compared with the US$2.510 billion in the same period last year; net revenue from workstations was US$535 million, an increase of 9% compared with US$492 million in the same period last year; net revenue from other products was 741 million US dollars, compared with 454 million US dollars in the same period last year, an increase of 63%.
The revenue of HP Printing Group in the fourth fiscal quarter was US$4.533 billion, a decrease of 7% compared with US$4.879 billion in the same period last year, and a year-on-year decrease of 6% excluding the impact of exchange rate changes; the operating profit margin was 19.9%. Total hardware shipments in the fiscal fourth quarter fell 3% year-over-year, with business hardware shipments up 5% and personal hardware shipments down 4% year-over-year. Net revenue in the personal hardware business fell 7% year-over-year, while business hardware revenue rose 1% year-over-year.
Within the printing group, HP’s revenue from commercial products in the fourth fiscal quarter was US$1.108 billion, an increase of 1% compared with US$1.097 billion in the same period last year; revenue from consumer products was US$677 million, a year-on-year increase of It was down 7% from $725 million in the same period.
Enterprise investment in HP’s fiscal fourth quarter was $1 million, compared with $2 million in the same period last year.
HP’s material revenue in the fourth fiscal quarter was US$2.748 billion, a decrease of 10% compared with US$3.057 billion in the same period last year, and it also decreased by 10% year-on-year, excluding the impact of exchange rate changes.
Annual results:
For the entire fiscal year 2022, HP’s net revenue was $63 billion, down 0.8% from $63.5 billion in fiscal year 2021, and up 0.7% year-over-year excluding the impact of exchange rate changes. HP’s net income for fiscal 2022 will be $3.2 billion, down 51% from $6.5 billion in fiscal 2021. HP’s fiscal 2022 earnings per diluted share will be $3.05, down 43% from $5.33 in fiscal 2021.
Excluding one-time items (non-GAAP), HP’s adjusted net income in fiscal 2022 was $4.3 billion, down 7% from $4.6 billion in fiscal 2021; adjusted EPS was 4.08 The U.S. dollar rose 8 percent from $3.79 a year earlier, beating analysts’ expectations. According to data provided by FactSet, analysts on average had expected HP’s adjusted earnings per share to reach $4.07 in fiscal 2022.
HP’s operating margin in fiscal 2022 was 7.4%, down 1.0 percentage points from 8.4% in fiscal 2021. Excluding one-time items (non-GAAP), HP’s adjusted operating margin in fiscal 2022 was 8.7%, down 0.4 percentage points from 9.1% in fiscal 2021.
Additional financial information:
Total costs and expenses for HP’s fiscal fourth quarter were $14.034 billion, compared with $15.437 billion for the same period last year. Among them, the cost of revenue was US$12.084 billion, compared with US$13.410 billion in the same period last year; research and development expenditure was US$382 million, compared with US$445 million in the same period last year; sales, general and administrative expenses were US$1.189 billion, Compared with $1.474 billion in the same period last year; restructuring and divestiture expenses were $70 million, compared with $29 million in the same period last year; M&A related expenses were $235 million, compared with $28 million in the same period last year; Amortization of intangible assets was $74 million compared to $51 million in the same period last year.
Net cash provided by HP’s operating activities in the fourth quarter was $1.9 billion. As of the end of the fourth fiscal quarter, HP’s total accounts receivable was $4.5 billion; the days of accounts receivable turnover was 28 days, an increase of 1 day compared with the previous quarter. As of the end of the fiscal fourth quarter, HP had a total inventory value of $7.6 billion and 57 days of inventory, a decrease of 6 days compared with the previous quarter. As of the end of the fourth fiscal quarter, HP’s total accounts payable was $15.3 billion, and the days of accounts payable turnover was 114 days, a decrease of 5 days compared with the previous quarter.
Free cash flow for HP’s fiscal fourth quarter was $1.8 billion. Free cash flow includes $1.9 billion of net cash provided by operating activities, adjusted for a $61 million net investment in leases and a $144 million net investment in property, plant and equipment.
HP paid a cash dividend of $0.25 per share in the fourth quarter, using $200 million in cash for the dividend. In addition, HP used $800 million in cash to repurchase approximately 26.6 million common shares in the open market during the fourth quarter. As a result, HP returned 55% of its free cash flow to shareholders during the fiscal fourth quarter. As of the end of the fourth fiscal quarter, HP held total cash of $3.2 billion, including cash and cash equivalents and short-term investments.
HP’s full-year fiscal 2022 net cash provided by operating activities is $4.5 billion, with free cash flow of $3.9 billion. Free cash flow includes $4.5 billion of net cash provided by operating activities, adjusted for a $155 million net investment in leases and a $765 million net investment in property, plant and equipment.
HP used about $4.3 billion of cash to repurchase about 126 million shares of common stock on the open market throughout fiscal 2022. Combined with HP’s $1 billion cash dividend in fiscal 2022, the company returned 138% of free cash flow to shareholders for the full year.
Performance outlook:
Performance outlook for the first quarter of fiscal year 2023:
HP expects that, in accordance with US GAAP, diluted earnings per share in the first quarter of fiscal 2023 will be between US$0.47 and US$0.57; non-GAAP adjusted diluted earnings per share in the first quarter are expected to be Between $0.70 and $0.80, the performance outlook fell short of analyst expectations. On a non-GAAP basis, HP’s estimate of diluted earnings per share from continuing operations for the first quarter of fiscal 2023 excludes an after-tax charge of $0.23 per share, primarily related to restructuring and other expenses, acquisition and divestiture expenses, intangible asset amortization expenses, non-operating retirement related expenses or credits, tax adjustments and the related tax effects of these items.
According to data provided by FactSet, analysts on average had expected HP’s first-quarter adjusted earnings per share to reach $0.86.
Performance outlook for fiscal year 2023:
HP expects that, in accordance with US GAAP, its diluted earnings per share for the quarter of fiscal 2023 will be between $2.22 and $2.62; non-GAAP adjusted earnings per diluted share for fiscal 2023 are expected to be between $3.20 and $3.60. Between dollars, the mean ($3.40) of this earnings outlook missed analysts’ expectations. Non-GAAP, HP’s fiscal 2023 estimate of diluted earnings per share from continuing operations excludes an after-tax charge of $0.98 per share related primarily to restructuring and other charges, mergers and acquisitions and divestiture charges, intangible asset amortization charges, non-operating retirement related charges or credits, tax adjustments and the related tax effects of these items.
According to data provided by FactSet, analysts on average had expected HP’s adjusted earnings per share to reach $3.54 in fiscal 2023.
HP also expects free cash flow in the range of $3 billion to $3.5 billion in fiscal 2023.
Stock price change:
On the same day, HP’s stock price rose 0.22 US dollars in regular trading on the New York Stock Exchange to close at 29.38 US dollars, an increase of 0.75%. In subsequent after-hours trading as of 4:46 p.m. Eastern Time on the 22nd (5:46 a.m. Beijing time on the 23rd), HP’s stock price rose another $0.25 to $29.63, an increase of 0.85%. In the past 52 weeks, HP’s highest price was $41.47 and its lowest price was $24.08.