Shulou(Shulou.com)11/24 Report--

According to news in the morning of November 22, Beijing time, Hewlett-Packard today released its fourth quarter and full-year results for fiscal 2023.

According to the report, HP's fourth-quarter net income was $13.8 billion, down 6.5% from $14.8 billion in the same period last year, while net profit was $1 billion, compared with a net loss of $23 million in the same period last year. Adjusted net profit, which is not in accordance with US general accounting standards, was $900m, up 8 per cent from $800m in the same period last year.

HP's fourth-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations, but the outlook for adjusted earnings per share in the first quarter of fiscal 2024 fell short of expectations. HP shares fell more than 3 per cent in after-hours trading after the earnings announcement.

Summary of fiscal fourth quarter results of Tuyuan Pexels2023: for the fiscal quarter ended October 31, 2023, HP posted a net profit of $1 billion, compared with a net loss of $23 million in the same period last year. HP's fourth-quarter net diluted income per share was $0.97, compared with a diluted net loss of $0.02 a share in the same period last year.

Excluding one-time items (not in accordance with GAAP), HP's adjusted net income for the fourth quarter was $900 million, up 8% from $800 million in the same period last year, and adjusted net income per share was $0.90. Up 10% from $0.82 in the same period last year, which exceeded analysts' expectations. On average, 13 analysts had expected HP's fourth-quarter earnings per share to reach 82 cents, according to data provided by Yahoo Finance.

HP's fourth-quarter net income and earnings per share (which are not in accordance with GAAP) exclude after-tax adjustments of $14 million and $0.02 per share, respectively. This adjustment is related to restructuring and other expenses, mergers and acquisitions and divestiture expenses, intangible assets amortization expenses, debt service income, non-operating retirement-related credit, and tax adjustments.

HP's fourth-quarter net revenue was $13.8 billion, down 6.5% from $14.8 billion in the same period last year. Excluding currency changes, HP's fourth-quarter net revenue fell 5% from a year earlier, but the performance still exceeded analysts' expectations. On average, 11 analysts had expected HP's fourth-quarter net revenue to reach $12.69 billion, according to Yahoo Finance.

According to general accounting standards, hp's operating margin in the fourth quarter was 7.3%, up 2.3 percentage points from 5.0% in the same period last year. Excluding one-time items (not in accordance with GAAP), hp's adjusted operating margin in the fourth quarter was 9.0%, up 1.4 percentage points from 7.6% in the same period last year.

Fourth quarter results by departments: by business unit, HP personal Systems Group's fourth-quarter revenue was $9.4 billion, down 8% from $10.2 billion in the same period last year, and 7% year-on-year excluding exchange rate changes. Personal Systems Group's fourth-quarter operating profit margin was 6.7%. Of this total, net revenue of the commercial PS division fell 11 per cent year-on-year, while that of the consumer PS division fell 1 per cent year-on-year; total shipments were the same as the same period last year, with shipments of consumer PS devices up 9 per cent and commercial PS devices down 6 per cent.

Within the personal systems group, HP's fourth-quarter net revenue from the commercial PS division was $6.213 billion, down 11 per cent from $7.016 billion in the same period last year, while net revenue from the consumer PS division was $3.185 billion, down 1 per cent from $3.224 billion in the same period last year.

Hewlett-Packard printing group's fourth-quarter revenue was $4.4 billion, down 3 per cent from $4.5 billion in the same period last year, and 2 per cent year-on-year, excluding exchange rate changes; operating profit margin was 18.9 per cent. Of this total, net revenue from the personal printer business fell 21% in the fourth quarter from a year earlier, while revenue from the commercial printer business fell 4% from a year earlier. In the fourth quarter, total hardware shipments fell 19% year-on-year, including commercial hardware shipments down 24% year-on-year and personal hardware shipments down 18%.

Within the printing group, HP's revenue from commercial products in the fourth quarter was $1.064 billion, down 4% from $1.108 billion in the same period last year, while revenue from consumer products was $533 million, down 21% from $677 million in the same period last year.

HP's fourth-quarter corporate investment was $2 million, compared with $1 million in the same period last year.

HP's fourth-quarter materials revenue was $2.821 billion, up 3 per cent from $2.748 billion in the same period last year, and 4 per cent year-on-year, excluding currency changes.

Summary of full-year results for fiscal year 2023: for the entire fiscal year 2023, hp's net revenue was $53.7 billion, down 14.6% from $62.9 billion in fiscal 2022, and 12% year-on-year excluding exchange rate changes. HP's net profit for fiscal 2023 was $3.3 billion, up 4 per cent from $3.1 billion in fiscal 2022. HP's diluted net income per share in fiscal 2023 was $3.26, up 9% from $2.98 in fiscal 2022.

Excluding one-time items (not in accordance with GAAP), HP's adjusted net profit for fiscal 2023 was $3.3 billion, down 22% from $4.2 billion in fiscal 2022, and adjusted earnings per share was $3.28. it is down 18% from $3.98 in the same period last year, but it still beat analysts' expectations. On average, 16 analysts expected HP's adjusted earnings per share in fiscal 2023 to reach $3.02, according to data provided by Yahoo Finance.

HP's operating margin was 6.4% in fiscal 2023, down 0.8 percentage points from 7.2% in fiscal 2022. Excluding one-time items (not in accordance with GAAP), HP's adjusted operating margin was 8.5 per cent in fiscal 2023, unchanged from 8.5 per cent in fiscal 2022.

Other financial information: HP's total costs and expenses in the fourth quarter were $12.803 billion, compared with $14.033 billion in the same period last year. Of this total, revenue costs were $10.832 billion, compared with $12.083 billion in the same period last year; R & D expenditure was $411 million, compared with $382 million in the same period last year; sales, general and administrative expenses were $1.327 billion, compared with $1.89 billion in the same period last year; restructuring and divestiture expenses were $111 million, compared with $7000 in the same period last year M & A-related expenses were $34 million, compared with $235 million in the same period last year, and amortization of intangible assets was $88 million, compared with $74 million in the same period last year.

Hewlett-Packard's fourth-quarter business operations provided net cash of $2 billion. At the end of the fourth quarter, Hewlett-Packard had total receivables of $4.2 billion and accounts receivable turnover days were 28 days, down two days from the previous quarter. At the end of the fourth quarter, HP had a total inventory value of $6.9 billion and 57 days of inventory, down five days from the previous quarter. At the end of the fourth quarter, Hewlett-Packard had total accounts payable of $14 billion and accounts payable turnover days of 117 days, down six days from the previous quarter.

HP's free cash flow in the fourth quarter was $1.9 billion. Free cash flow includes $2 billion in net cash provided by business operations and adjusted for $28 million in net investment in leases and $134 million in net investment in property, plant and equipment.

Hewlett-Packard paid out a cash dividend of $0.2625 per share in the fourth quarter, using $300m in cash to pay out the dividend. As a result, HP returned 14% of its free cash flow to shareholders in the fourth quarter. At the end of the fourth quarter, HP held a total of $3.2 billion in cash, including cash and cash equivalents, restricted cash and short-term investments. Cash, cash equivalents and restricted cash include restricted cash of $125 million, which is related to the amount collected and held for trade receivables previously sold on behalf of third parties.

Hewlett-Packard provided net cash of $3.6 billion and free cash flow of $3.1 billion from business operations for fiscal 2023. Free cash flow includes $3.6 billion in net cash provided by business operations and adjusted for $110 million in net investment in leases and $593 million in net investment in property, plant and equipment.

Hewlett-Packard used about $100 million in cash to buy back about 3.6 million common shares on the open market throughout fiscal 2023. Together with a $1 billion cash dividend in fiscal 2023, HP returned 37 per cent of its free cash flow to shareholders throughout the year.

HP's board has announced that it will pay a quarterly cash dividend of $0.2756 per share to common shareholders, up 5 per cent from the previous dividend. The dividend will be paid on January 4, 2024.

Performance outlook: first quarter of fiscal 2024 performance outlook: Hewlett-Packard expects diluted earnings per share of between 60 and 70 per share in accordance with US GAAP in the first quarter of fiscal 2024. Without GAAP, adjusted diluted earnings per share for the first quarter are expected to be between $0.76 and $0.86, with an average outlook of $0.81, falling short of analysts' expectations. Not in accordance with GAAP, HP's estimate of diluted earnings per share from continuing operations for the first quarter of fiscal 2024 did not include after-tax expenses of $0.16 per share. This expenditure is mainly related to restructuring and other expenses, mergers and acquisitions and divestiture expenses, intangible assets amortization expenses, non-operating retirement-related credits, tax adjustments and the related tax impact of these items.

Analysts had on average expected HP's adjusted earnings per share of 86 cents a share in the first quarter, according to LSEG, a provider of financial market data and infrastructure, formerly known as Refinitiv.

Outlook for fiscal year 2024: Hewlett-Packard expects diluted earnings per share for the 2024 fiscal quarter to be between $2.68 and $3.08 per share; without GAAP, adjusted diluted earnings per share for fiscal year 2024 are expected to be between $3.25 and $3.65, with an average outlook of $3.45, exceeding analysts' expectations. Not in accordance with GAAP, HP's estimates of diluted earnings per share from continuing operations for fiscal 2024 did not include after-tax expenses of $0.57 per share, which are mainly related to restructuring and other expenses, mergers and acquisitions and divestitures, intangible asset amortization expenses, non-operating retirement-related credits, tax adjustments and the related tax impact of these items.

On average, 15 analysts had expected HP's adjusted earnings per share to reach $3.16 in fiscal 2024, according to Yahoo Finance.

Hewlett-Packard also expects free cash flow in fiscal 2024 to range from $3.1 billion to $3.6 billion.

Share price movements: HP shares fell 12 cents, or 0.43%, to close at $27.87 in regular trading on the New York Stock Exchange. HP shares fell another 87 cents, or 3.12 percent, to $27.00 in after-hours trading as of 05:21 EDT on the 21st (06:21 Beijing time on the 22nd). In the past 52 weeks, HP's highest price is $33.90 and its lowest price is $25.22.

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