Hewlett Packard Enterprise Q1 2024 Earnings Report
Key Takeaways
Hewlett Packard Enterprise (HPE) reported mixed Q1 2024 results with revenue down 14% year-over-year to $6.8 billion, but exceeded profitability expectations. The company drove near-record year-over-year growth in recurring revenue, with ARR up 42% to $1.4 billion. HPE remains confident in capitalizing on market opportunities in AI, edge, and hybrid cloud.
HPE exceeded profitability expectations despite market headwinds.
Annualized revenue run-rate (ARR) increased by 42% year-over-year to $1.4 billion.
GAAP EPS was $0.29, above the midpoint of guidance, while non-GAAP EPS was $0.48, at the high end of guidance.
Free cash flow was $(482) million, an increase of $844 million from the prior-year period.
Hewlett Packard Enterprise
Hewlett Packard Enterprise
Hewlett Packard Enterprise Revenue by Segment
Forward Guidance
HPE estimates revenue to be in the range of $6.6 billion to $7.0 billion for the second quarter. HPE estimates GAAP diluted net EPS to be in the range of $0.20 to $0.25 and non-GAAP diluted net EPS to be in the range of $0.36 to $0.41. HPE estimates fiscal 2024 revenue growth to be flat to 2%, in constant currency, and fiscal 2024 GAAP operating profit growth to be in the range of 7% to 11% and non-GAAP operating profit growth to be flat to 2%. HPE estimates GAAP diluted net EPS to be in the range of $1.81 and $1.91 and non- GAAP diluted net EPS to be in the range of $1.82 and $1.92. HPE estimates free cash flow to be at least $1.9 billion.
Positive Outlook
- Revenue to be in the range of $6.6 billion to $7.0 billion for the second quarter.
- GAAP diluted net EPS to be in the range of $0.20 to $0.25 for the second quarter.
- Non-GAAP diluted net EPS to be in the range of $0.36 to $0.41 for the second quarter.
- Fiscal 2024 revenue growth to be flat to 2%, in constant currency.
- Free cash flow to be at least $1.9 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income