PALO ALTO, Calif., May 22, 2018 – Hewlett Packard Enterprise (NYSE: HPE) reported its financial performance for the second quarter of fiscal 2018, ending April 30, 2018. The results showcased growth across various segments, with significant increases in revenue and earnings per share.
Key Financial Highlights
- Net revenue reached $7.5 billion, marking a 10% increase compared to the same quarter last year, with a 6% growth after currency adjustments.
- The GAAP diluted net earnings per share (EPS) was $0.54, surpassing the earlier forecast of $0.10 to $0.14 per share, largely due to tax indemnification adjustments.
- Non-GAAP diluted EPS was reported at $0.34, exceeding the anticipated range of $0.29 to $0.33.
- HPE returned $1 billion to shareholders through dividends and share repurchases as part of its commitment to return $7 billion by the end of FY19.
- The dividend was increased by 50% starting in Q3 FY18, consistent with previous announcements.
- Outlook for FY18 GAAP diluted EPS was raised to a range of $1.70 to $1.80, with non-GAAP EPS adjusted to $1.40 to $1.50.
Segment Performance
- Hybrid IT: Generated $6.0 billion in revenue, up 7% year-over-year (4% adjusted for currency), with a 10.3% operating margin. Growth was led by a 6% increase in Compute revenue and a 24% rise in Storage revenue.
- Intelligent Edge: Revenue of $710 million marked a 17% increase year-over-year (14% adjusted for currency), along with a 6.5% operating margin. Notable growth in HPE Aruba Product revenue was 18%.
- Financial Services: Revenue totaled $916 million, reflecting a 5% increase year-over-year (1% adjusted for currency) and achieved a 7.9% operating margin.
Financial Performance Data
| Q2 FY18 | Q2 FY17 | Change (Y/Y) | |
|---|---|---|---|
| GAAP Net Revenue ($B) | $7.5 | $6.8 | 10.3% |
| GAAP Operating Margin (%) | 5.3 | 2.9 | 2.4 pts |
| GAAP Net Earnings ($B) | $0.9 | ($0.5) | NM |
| Non-GAAP Operating Margin (%) | 8.6 | 5.9 | 2.7 pts |
| Cash Flow from Operations ($B) | $0.2 | $0.7 | ($0.5) |
Future Outlook
Hewlett Packard Enterprise anticipates that for the third quarter of fiscal 2018, the GAAP diluted net EPS will be between $0.19 and $0.23, while the non-GAAP diluted EPS is forecasted to be between $0.35 and $0.39. The estimates for fiscal 2018 indicate a projected GAAP diluted EPS in the range of $1.70 to $1.80 and non-GAAP diluted EPS between $1.40 and $1.50, after adjusting for several cost impacts associated with transformation and tax reforms.
Background on Hewlett Packard Enterprise
Hewlett Packard Enterprise is a global technology leader that focuses on creating intelligent solutions for data management across various environments from edge to cloud. The company aims to empower customers to enhance their business outcomes through innovative solutions, fostering operational efficiency and transforming customer experiences.
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