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Apr 30, 2023
Hewlett Packard Enterprise Q2 2023 Earnings Report
Portfolio mix shift drove revenue, margin and ARR growth and operating profit and EPS guidance was raised for the full year.
Key Takeaways
Hewlett Packard Enterprise (HPE) reported a strong second quarter, driven by a shift to a higher-margin portfolio mix led by the Intelligent Edge segment and strong demand for its AI offering. The company's revenue grew, recurring revenue increased through the HPE GreenLake edge-to-cloud platform, and exceptional profitability was delivered.
Revenue was $7.0 billion, up 4% year-over-year and 9% in constant currency.
Annualized revenue run-rate (ARR) was $1.1 billion, up 35% year-over-year and 38% in constant currency.
GAAP gross margin was 36.0%, an all-time record for the company, up 360 basis points year-over-year.
GAAP EPS was $0.32, up 68% year-over-year.
Revenue by Segment
Forward Guidance
HPE estimates Q3 revenue to be in the range of $6.7 billion to $7.2 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.34 to $0.38 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.48. HPE estimates fiscal 2023 revenue growth to be in the range of 4%-6% in constant currency, and targets fiscal 2023 GAAP operating profit growth to be in the range of 180%-184% and non-GAAP operating profit growth to be in the range of 6%-7%. HPE raises GAAP diluted net EPS to be in the range of $1.42 and $1.50 and non-GAAP diluted net EPS to be in the range of $2.06 and $2.14. Fiscal 2023 Free Cash Flow reiterates guidance of $1.9 billion to $2.1 billion.
Positive Outlook
- Estimates Q3 fiscal 2023 revenue to be in the range of $6.7 billion to $7.2 billion
- Estimates Q3 fiscal 2023 GAAP diluted net EPS to be in the range of $0.34 to $0.38
- Estimates Q3 fiscal 2023 non-GAAP diluted net EPS to be in the range of $0.44 to $0.48
- Estimates fiscal 2023 revenue growth to be in the range of 4%-6% in constant currency
- Targets fiscal 2023 GAAP operating profit growth to be in the range of 180%-184%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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