PALO ALTO, Calif., – (GlobeNewswire) – May 27, 2020 – HP (NYSE: HPQ)
- Second quarter GAAP diluted net earnings per share (“EPS”) of $0.98, above the previously provided outlook of $0.82 to $0.88 per share
- Second quarter non-GAAP diluted net EPS of $0.93, above the previously provided outlook of $0.84 to $0.9 per share
- Second quarter net revenue of $15.9 billion, up 27.3% from the prior-year period
- Second quarter net cash provided by operating activities of $1.4 billion, free cash flow of $1.3 billion
- Second quarter returned $1.8 billion to shareholders in the form of share repurchases and dividends
Net revenue and EPS results
HP Inc. and its subsidiaries (“HP”) announced fiscal 2021 second quarter net revenue of $15.9 billion, up 27.3% (up 25.4% in constant currency) from the prior-year period.
Second quarter GAAP diluted net EPS was $0.98, up from $0.53 in the prior-year period and above the previously provided outlook of $0.82 to $0.88. Second quarter non-GAAP diluted net EPS was $0.93, up from $0.51 in the prior-year period and above the previously provided outlook of $0.84 to $0.90. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $70 million, or $0.05 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, and tax adjustments.
“We delivered another strong quarter, with double-digit top and bottom line growth. HP technology is increasingly at the heart of hybrid work and we are benefitting from exceptional demand for our products and services,” said Enrique Lores, HP Inc. President and CEO. “Our performance and our positive outlook for the full year reflect the relevance of our innovation, the resilience of our business model, and the operational excellence of our teams.”
Asset management
HP’s net cash provided by operating activities in the second quarter of fiscal 2021 was $1.4 billion. Accounts receivable ended the quarter at $5.0 billion, down 2 days quarter over quarter to 28 days. Inventory ended the quarter at $7.5 billion, up 5 days quarter over quarter to 54 days. Accounts payable ended the quarter at $15.2 billion, up 1 day quarter over quarter to 110 days.
HP generated $1.3 billion of free cash flow in the second quarter. Free cash flow includes net cash provided by operating activities of $1.4 billion adjusted for net investments in leases of $21 million and net investments in property, plant and equipment of $121 million.
HP’s dividend payment of $0.1938 per share in the second quarter resulted in cash usage of $239 million. HP also utilized $1.6 billion of cash during the quarter to repurchase approximately 53.5 million shares of common stock in the open market. As a result, HP returned 137% of its second quarter free cash flow to shareholders. HP exited the quarter with $3.4 billion in gross cash, which includes cash and cash equivalents and short-term investments of $12 million included in other current assets.
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SOURCE HP
