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Jan 31, 2022

Hewlett Packard Enterprise Q1 2022 Earnings Report

Hewlett Packard Enterprise's financial performance was marked by robust customer demand and improved profitability, driven by its edge-to-cloud strategy and portfolio innovation.

Key Takeaways

Hewlett Packard Enterprise reported Q1 2022 results with revenue of $7.0 billion, up 2% year-over-year. GAAP EPS was $0.39, and non-GAAP EPS was $0.53. The company raised its full-year EPS outlook due to strong demand and profitability.

Orders increased by 20% year-over-year, marking the third consecutive quarter of growth exceeding 20%.

As-a-Service orders increased 136% from the prior year period.

GAAP EPS was $0.39, exceeding the previously provided outlook of $0.19 to $0.27 per share.

Non-GAAP EPS was $0.53, exceeding the previously provided outlook of $0.42 to $0.50 per share.

Total Revenue
$6.96B
Previous year: $6.83B
+1.9%
EPS
$0.53
Previous year: $0.52
+1.9%
ARR
$798M
Previous year: $649M
+23.0%
Gross Margin
33.7%
Non-GAAP Gross Margin
33.9%
Gross Profit
$2.34B
Previous year: $2.29B
+2.4%
Cash and Equivalents
$3.86B
Previous year: $4.17B
-7.3%
Free Cash Flow
-$577M
Previous year: $563M
-202.5%
Total Assets
$57.9B
Previous year: $53.5B
+8.3%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

Hewlett Packard Enterprise raised both GAAP and non-GAAP diluted net EPS to be in the range of $1.36 to $1.50 and $2.03 to $2.17, respectively. Reiterates fiscal 2022 revenue growth of 3-4% adjusted for currency and free cash flow guidance to be in the range of $1.8 to $2.0 billion.

Positive Outlook

  • Estimates GAAP diluted net EPS to be in the range of $0.18 to $0.26 for Q2 2022.
  • Estimates non-GAAP diluted net EPS to be in the range of $0.41 to $0.49 for Q2 2022.
  • Raises GAAP diluted net EPS outlook of $1.36 to $1.50 for fiscal year 2022.
  • Raises non-GAAP diluted net EPS outlook of $2.03 to $2.17 for fiscal year 2022.
  • Reiterates free cash flow guidance of $1.8 to $2.0 billion for fiscal year 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income