HP Inc. and its subsidiaries (“HP”) announced fiscal 2023 net revenue of $53.7 billion, down 15% (down 12% in constant currency) from the prior-year period.

Here are the highlights:

  • Fiscal 2023 GAAP diluted net earnings per share (“EPS”) of $3.26, above the previously provided outlook of $2.95 to $3.07 per share
  • Fiscal 2023 non-GAAP diluted net EPS of $3.28, within the previously provided outlook of $3.23 to $3.35 per share
  • Fiscal 2023 net revenue of $53.7 billion, down 14.6% from the prior-year period
  • Fiscal 2023 net cash provided by operating activities of $3.6 billion, free cash flow of $3.1 billion
  • Fiscal 2023 returned $1.1 billion to shareholders in the form of dividends and share repurchases
  • Fiscal 2023 retired $1.6 billion in long term debt
  • Fourth quarter GAAP diluted net EPS was $0.97, above the previously provided outlook of $0.65 to $0.77 per share
  • Fourth quarter non-GAAP diluted net EPS of $0.90, within the previously provided outlook of $0.85 to $0.97 per share
  • Fourth quarter net revenue of $13.8 billion, down 6.5% from the prior-year period
  • Fourth quarter net cash provided by operating activities of $2.0 billion, free cash flow of $1.9 billion
  • Fourth quarter returned $0.3 billion to shareholders in the form of dividends

Fiscal 2023 GAAP diluted net EPS was $3.26, up from $2.98 in the prior-year period and above the previously provided outlook of $2.95 to $3.07. Fiscal 2023 non-GAAP diluted net EPS was $3.28, down from $3.98 in the prior-year period and within the previously provided outlook of $3.23 to $3.35. Fiscal 2023 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $14 million, or $0.02 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, debt extinguishment benefit, non-operating retirement-related credits, and tax adjustments.

Fourth quarter net revenue was $13.8 billion, down 6% (down 5% in constant currency) from the prior-year period.

Fourth quarter GAAP diluted net EPS was $0.97, up from $(0.02) in the prior-year period and above the previously provided outlook of $0.65 to $0.77. Fourth quarter non-GAAP diluted net EPS was $0.90, up from $0.82 in the prior-year period and within the previously provided outlook of $0.85 to $0.97. Fourth quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $72 million, or $0.07 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.

“2023 was a year of steady progress. We executed well in a tough market and innovated in our key growth areas to finish the year with good momentum,” said Enrique Lores, HP President and CEO. “Our Future Ready plan is positioning us well to capitalize on attractive opportunities across our portfolio and deliver long-term sustainable growth.”

“Q4 was a solid quarter of sequential growth and strong free cash flow as we continued to improve the performance of the company,” said Marie Myers, HP CFO. “We are entering FY24 with a relentless focus on driving profitable growth, reducing our structural costs and returning 100% of our free cash flow to shareholders.”

Asset management
HP generated $3.6 billion in net cash provided by operating activities and $3.1 billion of free cash flow in fiscal 2023. Free cash flow includes net cash provided by operating activities of $3.6 billion adjusted for net investments in leases of $110 million and net investments in property, plant and equipment of $593 million. HP utilized $100 million of cash during fiscal 2023 to repurchase approximately 3.6 million shares of common stock in the open market. When combined with the $1.0 billion of cash used to pay dividends, HP returned 37% of its free cash flow to shareholders in fiscal 2023.

Source: HP