HP Inc announced fiscal 2022 third-quarter net revenue of $14.7 billion, down 4.1% from the prior-year period while diluted net EPS was $1.08, up from $0.92 in the prior-year period and above the previously provided outlook of $0.91 to $0.96.

HP’s net cash provided by operating activities in the third quarter of fiscal 2022 was $0.4 billion and it generated $0.3 billion of free cash flow.

Net income came at $1.1 billion vs. $1.2 billion in Q2 2021.

Fiscal 2022 third quarter segment results

• Personal Systems net revenue was $10.1 billion, down 3% year over year with a 6.9% operating margin. Consumer net revenue decreased 20% and Commercial net revenue increased 7%. Total units were down 25% with Notebooks units down 32% and Desktops units up 1%.
• Printing net revenue was $4.6 billion, down 6% year over year with a 19.9% operating margin. Consumer net revenue was up 1% and Commercial net revenue was down 3%. Supplies net revenue was down 9% (down 9% in constant currency). Total hardware units were down 3% with Consumer units down 1% and Commercial units down 15%.

Total share repurchases and dividends from Hewlett&Packard amounted to $1.3 billion in the current quarter. In Q1, the purchase of 121 million shares of the company worth nearly $5 billion by Warren Buffett’s fund, Berkshire Hathaway (BRKB.US).

Funudsz still holds 11% of the company’s shares. On Monday, HP announced the acquisition of Poly, which creates solutions for hybrid and remote work.

Outlook
For the fiscal 2022 fourth quarter, HP estimates diluted net EPS to be in the range of $0.44 to $0.54, which includes a GAAP-only charge of approximately $0.27 towards acquisition-related charges for Poly, and non-GAAP diluted net EPS to be in the range of $0.79 to $0.89, which includes an incremental approximate $0.05 headwind driven by Poly’s debt-related expenses and other deal-related costs.

Fiscal 2022 fourth quarter non-GAAP diluted net EPS estimates exclude $0.35 per diluted share, primarily related to restructuring and other charges, acquisition-related charges including charges related to Poly noted above, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

For the fiscal year 2022, HP estimates GAAP diluted net EPS to be in the range of $3.46 to $3.56, which includes a GAAP-only charge of approximately $0.27 towards acquisition-related charges for Poly, and non-GAAP diluted net EPS to be in the range of $4.02 to $4.12, which includes an incremental approximate $0.05 headwind driven by Poly’s debt-related expenses and other deal-related costs. Fiscal 2022 non-GAAP diluted net EPS estimates exclude $0.56 per diluted share, primarily related to restructuring and other charges, acquisition-related charges including charges related to Poly noted above, Russia exit 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 in the range of $3.2 billion to $3.7 billion