HP Inc. Technology and Software Major (NYSE: HPQ) announced better-than-expected results for the second quarter ended April 30, 2022.
After the upbeat earnings, the company’s shares edged higher to close at $38.95 in Monday’s extended trading session.
Revenues and profits
HP reported quarterly revenue of $16.5 billion, up 4% from the same quarter last year, beating the consensus estimate of $16.17 billion. Personal Systems net revenue increased 9% year-on-year to $11.5 billion and accounted for approximately 70% of total revenue.
Earnings for the quarter were $1.08 per share, up 16% year over year, beating the consensus estimate of $1.05 per share.
At the same time, the operating margin for the quarter was 8.8%, compared to 9.3% a year ago.
In addition, net cash provided by operating activities increased from $1.4 billion a year ago to $500 million.
The company’s dividend yield of 2.43% remains above the industry average of 0.729%.
For the third quarter, the company expects EPS to be between $1.03 and $1.08 per share. The company expects earnings of $4.24 to $4.38 per share for fiscal 2022.
Management’s point of view
HP CEO Enrique Lores said, “We delivered a strong quarter of revenue and non-GAAP EPS growth, while returning significant capital to shareholders. Collectively, our core growth businesses delivered double-digit growth and generated $5.6 billion in revenue in the first half of the year. Our consistent performance in the face of a volatile macro environment gives us confidence in our plans to build a stronger HP.
The consensus among analysts is a block based on one buy, 6 blocks and two sells. HP’s average price target of $36.31 implies downside potential of 6.5% from current levels. The shares have gained 30.1% over the past year.
TipRanks’ website traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s largest website usage monitoring service, provides insight into HP’s performance this quarter.
According to the tool, traffic to the company’s website has increased by 26.02% since the start of the year, compared to the previous year.
The increase in website traffic seen so far this year has been a timely precursor to the company’s strong results. This shows that TipRanks website traffic tool helps in making reliable predictions about a business’s performance.
With strong quarterly results and a dividend yield above its peers, the company’s future prospects look solid.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.
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