The company’s report for Q1 2022 blows past analysts’ estimates and paints a very rosy forecast for the rest of the year.
HP, the PC and printer giant, this week announced a big jump in fiscal first-quarter PC sales and overall revenue. It also offered strong guidance for the next quarter and fiscal year.
The company reported net income of $1.08 billion, with earnings before certain costs such as stock compensation coming to $1.10 per share. It also delivered record revenue of $17 billion, up 9% from a year ago. The results far surpassed analysts’ targets.
“We once again delivered strong top and bottom-line results with record revenue driven by strong demand and our leadership in hybrid,” said Enrique Lores, HP President and CEO. “Our Q1 performance was particularly strong across our key growth areas that collectively grew double digits including gaming, peripherals, workforce solutions, consumer subscriptions, and industrial graphics and 3D. Our performance reflects progress against our strategy to build a stronger HP.”
HP said personal systems sales, which include desktop computers and laptops, accounted for the lion’s share of its revenue with sales rising 15% from a year ago, to $12.2 billion. Analysts had forecast the segment to do just $11.6 billion in sales.
Within the segment, surprisingly perhaps, workstation sales showed the most growth at 40%, followed by desktops at 17%. Notebook revenue rose 14%.
A very bullish forecast for 2022
For the fiscal 2022 second quarter, HP estimates earnings per share (EPS) to be in the range of $0.95 to $1.01 and non-GAAP diluted net EPS to be in the range of $1.02 to $1.08. The company is also updating its estimate of GAAP diluted net EPS to be in the range of $3.87 to $4.07 and raising its previous estimate of non-GAAP diluted net EPS to be in the range of $4.18 to $4.38.
For fiscal 2022, HP anticipates generating free cash flow of at least $4.5 billion.
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