Overview of Hewlett Packard (HPQ) 4th quarter 2021 earnings report
Category: Hewlett Packard Inc (HPQ)
Date: 1 December 2021 Stock price of Hewlett Packard (HPQ): $35.28 Market Capital of Hewlett Packard: $40.66 billion We take a look at the 4th quarter 2021 earnings report of Hewlett Packard (HPQ) a global cloud platform service provider with a market capital of over $24 billion. For the quarter the group reported revenues of $16.67billion and net income of $3.09 billion.
|
Our YouTube channel is now live. Watch short summary videos of our articles
Our results reflect a growth-oriented company on its front foot and hitting its stride. We delivered a very strong quarter to close out an exceptional year of double-digit revenue, operating profit and EPS growth while returning record levels of capital to shareholders - Enrique Lores, HP President and CEO"
More About Hewlett Packard Enterprise
HP Inc. (NYSE: HPQ) is a technology company that believes one thoughtful idea has the power to change the world. Its product and service portfolio of personal systems, printers, and 3D printing solutions helps bring these ideas to life
Overview of Hewlett Packard's 4th quarter and fiscal 2021 earnings
PALO ALTO, Calif., Nov. 23, 2021 (GLOBE NEWSWIRE) -- HP (NYSE: HPQ)
- 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 billion1, 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
Related Topics:
Hewlett Packard's management commentary 3rd quarter 2021 earnings report
PALO ALTO, Calif., Nov. 23, 2021 (GLOBE NEWSWIRE) -- HP (NYSE: HPQ)
“Our results reflect a growth-oriented company on its front foot and hitting its stride. We delivered a very strong quarter to close out an exceptional year of double-digit revenue, operating profit and EPS growth while returning record levels of capital to shareholders,” said Enrique Lores, HP President and CEO. “HP is at the heart of hybrid with an innovative portfolio of hardware, software and subscriptions that position the company well for sustained growth in fiscal year 2022 and beyond.”
“Our results reflect a growth-oriented company on its front foot and hitting its stride. We delivered a very strong quarter to close out an exceptional year of double-digit revenue, operating profit and EPS growth while returning record levels of capital to shareholders,” said Enrique Lores, HP President and CEO. “HP is at the heart of hybrid with an innovative portfolio of hardware, software and subscriptions that position the company well for sustained growth in fiscal year 2022 and beyond.”
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. 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 estimates 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. 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.
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. 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 estimates 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. 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.
Hewlett Packard (HPQ) stock price chart over the last 5 years
The image below shows the stock price history of Hewlett Packard (HPQ) over the last 5 years. And its been a good time for Hewlett Packard stockholders with the stock decreasing by 131.9% over the last 5 years.
The stock of Hewlett is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Hewlett Packard stock is positive at this point in time.
The stock of Hewlett is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Hewlett Packard stock is positive at this point in time.
Latest stock valuation of Hewlett Packard (HPQ)
So what is Hewlett Packard stock worth based on their 4th quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Hewlett Packard at $53.20 a stock
We therefore believe the stock of Hewlett Packard is undervalued at its current price of $35.28
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $53.20 thus a good entry point into Hewlett Packard would be at $47.90 or below.
We expect the stock of Hewlett Packard to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. We therefore rate the stock of Hewlett Packard as a BUY.
We therefore believe the stock of Hewlett Packard is undervalued at its current price of $35.28
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $53.20 thus a good entry point into Hewlett Packard would be at $47.90 or below.
We expect the stock of Hewlett Packard to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. We therefore rate the stock of Hewlett Packard as a BUY.
Next earnings release of Hewlett Packard
It is expected that Hewlett Packard will release their 1st quarter 2022 earnings report in early March 2022
Related Topics