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Jan 31, 2020
Hewlett Packard Enterprise Q1 2020 Earnings Report
HPE's first quarter results demonstrated progress against strategic priorities, shifting the company to higher-margin and more recurring revenues.
Key Takeaways
Hewlett Packard Enterprise reported Q1 2020 results with a revenue of $6.9 billion. The company's ARR grew by 19% and saw profitable growth in key areas of investment, including Intelligent Edge.
Revenue was $6.9 billion with growth in areas of investment, including Intelligent Edge and as-a-Service offerings.
Annualized revenue run-rate (ARR) was $511 million, up 19% from the prior-year period.
GAAP gross margin was 32.8%, up 170 basis points from the prior-year period and Non-GAAP gross margin was 33.2%, up 210 basis points from the prior-year period.
GAAP diluted net earnings per share was $0.25 and Non-GAAP of $0.44, up 5% from the prior-year period.
Revenue by Segment
Forward Guidance
Hewlett Packard Enterprise maintains GAAP diluted net EPS outlook of $1.01 to $1.17 and non-GAAP diluted net EPS outlook of $1.78 to $1.94. Revises free cash flow outlook range from $1.9 to $2.1 billion to $1.6 to $1.8 billion.
Positive Outlook
- Maintains GAAP diluted net EPS outlook of $1.01 to $1.17
- Maintains non-GAAP diluted net EPS outlook of $1.78 to $1.94
Challenges Ahead
- Revises free cash flow outlook range from $1.9 to $2.1 billion to $1.6 to $1.8 billion to account for current supply chain disruption impacting short-term cash conversion cycles.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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