Technology and software major HP Inc. (NYSE: HPQ) has reported better-than-expected results for the second quarter ended April 30, 2022.
Following the upbeat earnings, shares of the company rose marginally to close at $38.95 in Monday’s extended trading session.
Revenue & Earnings
HP reported quarterly revenues of $16.5 billion, up 4% from the same quarter last year, surpassing the consensus estimate of $16.17 billion. Net revenue of Personal Systems grew 9% year-over-year to $11.5 billion and accounted for about 70% of the total revenues.
Earnings for the quarter stood at $1.08 per share, up 16% year-over-year, topping the consensus estimate of $1.05 per share.
Meanwhile, the operating margin for the quarter came in at 8.8%, compared to 9.3% a year ago.
Further, the net cash provided by operating activities declined from $1.4 billion in the year-ago period to $500 million.
The company’s dividend yield of 2.43% remains above the sector average of 0.729%.
Outlook
For the third quarter, the company forecasts EPS to be in the range of $1.03 to $1.08 per share. The company anticipates earnings of $4.24 to $4.38 per share for Fiscal 2022.
Management’s Take
The CEO of HP, Enrique Lores, said, “We delivered a solid quarter of revenue and non-GAAP EPS growth, while returning significant capital to shareholders. Collectively, our key growth businesses grew double digits and drove $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.”
Stock Rating
Consensus among analysts is a Hold based on one Buy, 6 Holds and two Sells. HP’s average price target of $36.31 implies downside potential of 6.5% from current levels. Shares have gained 30.1% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into HP’s performance this quarter.
According to the tool, the footfall on the company’s website has grown 26.02% year to date, compared to the previous year.
The rise in the website traffic witnessed so far this year acted as a timely precursor to the company’s strong results. This shows that TipRanks’ website traffic tool helps in making reliable predictions about a company’s performance.
Conclusion
With strong quarterly results and a dividend yield higher than 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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