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Jul 31, 2021

Hewlett Packard Enterprise Q3 2021 Earnings Report

Q3 marked by strong orders, profitability and free cash flow. FY21 EPS and FCF outlook raised; share repurchases reinstated.

Key Takeaways

Hewlett Packard Enterprise reported a strong Q3 performance with impressive order growth, expanded margins, and record free cash flow. The company's edge-to-cloud strategy is driving improved momentum across its businesses. Full-year guidance raised to reflect continued momentum in demand and strong execution.

Orders: Strengthening demand accelerates growth, up strong double-digits from the prior-year period and year-to-date up 11% from the prior-year period

Revenue: $6.9 billion, up 3% sequentially and in-line with Q3 outlook of normal sequential seasonality; up 1% from the prior-year period

Annualized revenue run-rate (ARR): $705 million, up 33% from the prior-year period

Non-GAAP of $0.47, up 31% from the prior-year period and above the previously provided outlook of $0.38 to $0.44 per share

Total Revenue
$6.9B
Previous year: $6.82B
+1.2%
EPS
$0.47
Previous year: $0.32
+46.9%
ARR
$705M
Previous year: $528M
+33.5%
Gross Profit
$2.38B
Previous year: $2.1B
+13.4%
Cash and Equivalents
$5.29B
Previous year: $8.47B
-37.5%
Free Cash Flow
$526M
Previous year: $924M
-43.1%
Total Assets
$56.4B
Previous year: $58.2B
-3.1%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.14 to $0.22 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.52 for the fourth quarter of fiscal year 2021. Raises free cash flow guidance to $1.5 to $1.7 billion for fiscal year 2021.

Positive Outlook

  • Estimates GAAP diluted net EPS to be in the range of $0.14 to $0.22 for Q4 2021
  • Estimates non-GAAP diluted net EPS to be in the range of $0.44 to $0.52 for Q4 2021
  • Raises GAAP diluted net EPS outlook to $0.80 to $0.88 for fiscal 2021
  • Raises non-GAAP diluted net EPS outlook to $1.88 to $1.96 for fiscal 2021
  • Raises free cash flow guidance to $1.5 to $1.7 billion for fiscal 2021

Revenue & Expenses

Visualization of income flow from segment revenue to net income