HP (HPQ) Stock: Why The Price Jumped Today

By Amit Chowdhry ● Nov 24, 2021
  • The stock price of HP Inc (NYSE: HPQ) increased by over 5% pre-market today. This is why it happened.

The stock price of HP Inc (NYSE: HPQ) increased by over 5% pre-market today. Investors are responding positively to the company’s 2021 full year and fourth quarter results.

These are the highlights:

— Fiscal 2021 GAAP diluted net earnings per share (EPS) of $5.331, above the previously provided outlook of $3.56 to $3.62 per share

— Fiscal 2021 non-GAAP diluted net EPS of $3.79, above the previously provided outlook of $3.69 to $3.75 per share

— Fiscal 2021 net revenue of $63.5 billion, up 12.1% from the prior-year period

— Fiscal 2021 net cash provided by operating activities of $6.4 billion, free cash flow of $4.2 billion

— Fiscal 2021 returned $7.2 billion to shareholders in the form of share repurchases and dividends

— Fourth quarter GAAP diluted net EPS of $2.711, above the previously provided outlook of $0.82 to $0.88 per share

— Fourth quarter non-GAAP diluted net EPS of $0.94, above the previously provided outlook of $0.84 to $0.90 per share

— Fourth quarter net revenue of $16.7 billion, up 9.3% from the prior-year period

— Fourth quarter net cash provided by operating activities of $2.8 billion1, free cash flow of $0.9 billion

— Fourth quarter returned $2.0 billion to shareholders in the form of share repurchases and dividends

Outlook

For the fiscal 2022 first quarter, HP estimates GAAP diluted net EPS to be in the range of $0.92 to $0.98 and non-GAAP diluted net EPS to be in the range of $0.99 to $1.05. And the fiscal 2022 first quarter non-GAAP diluted net EPS estimates exclude $0.07 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

For fiscal 2022, HP is estimating GAAP diluted net EPS to be in the range of $3.86 to $4.06 and non-GAAP diluted net EPS to be in the range of $4.07 to $4.27. And the fiscal 2022 non-GAAP diluted net EPS estimates exclude $0.21 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items. For fiscal 2022, HP anticipates generating free cash flow of at least $4.5 billion.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.