HP Inc (NYSE:HPQ) stock fell 0.76% (As on Mar 1, 12:02:21 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22 driven by strong performance across the key growth areas that collectively grew double digits including gaming, peripherals, workforce solutions, consumer subscriptions, and industrial graphics and 3D. Further, the company returned $1.8 billion to shareholders in the quarter, with $1.5 billion by way of stock buybacks. HP’s net cash provided by operating activities in the first quarter of fiscal 2022 was $1.7 billion. Accounts receivable ended the quarter at $5.2 billion, down 3 days quarter over quarter to 27 days. Inventory ended the quarter at $9.0 billion, up 6 days quarter over quarter to 59 days. Accounts payable ended the quarter at $18.1 billion, up 11 days quarter over quarter to 119 days. HP had generated $1.4 billion of free cash flow in the first quarter. Free cash flow includes net cash provided by operating activities of $1.7 billion adjusted for net investments in leases of $20 million and net investments in property, plant and equipment of $273 million.
HPQ in the first quarter of FY 22 has reported the adjusted earnings per share of $1.10, beating the analysts’ estimates for the adjusted earnings per share by 8 cents. The company had reported the adjusted revenue growth of 8.8 percent to $17.02 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $16.5 billion. Personal Systems net revenue was $12.2 billion, up 15% year over year (up 14% in constant currency) with a 7.8% operating margin. Consumer net revenue decreased 1% and Commercial net revenue increased 26%. Total units were down 6% with Notebooks units down 9% and Desktops units up 3%.
Additionally, HP’s dividend payment of $0.25 per share in the first quarter resulted in cash usage of $0.3 billion. HP also utilized $1.5 billion of cash during the quarter to repurchase approximately 42.6 million shares of common stock in the open market. HP exited the quarter with $3.4 billion in gross cash, which includes cash and cash equivalents, and short-term investments of $5 million.
For the fiscal 2022 second quarter, HP estimates non-GAAP diluted net EPS to be in the range of $1.02 to $1.08. For fiscal 2022, HP has raised its previous estimate of non-GAAP diluted net EPS to be in the range of $4.18 to $4.38.