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Jul 31, 2022
Hewlett Packard Enterprise Q3 2022 Earnings Report
Reported revenue and margins grew due to enduring demand.
Key Takeaways
Hewlett Packard Enterprise reported Q3 2022 financial results with revenue of $7.0 billion, up 1% year-over-year. GAAP EPS was $0.31, up 7% year-over-year, and non-GAAP EPS was $0.48, up 2% year-over-year. The company reiterates fiscal 2022 revenue growth of 3-4% adjusted for currency.
Revenue: $7.0 billion, up 1% and 4% adjusted for currency from the prior-year period, above Q3 guidance
GAAP gross margin of 34.5%, flat from the prior-year period and up 210 basis points sequentially, and non-GAAP gross margin of 34.7%, flat from the prior-year period and up 50 basis points sequentially, driven by favorable mix shift and strategic pricing actions.
GAAP diluted net EPS was $0.31, up 7% from the prior-year period and up 63% sequentially.
Free cash flow of $587 million, up $61 million from the prior-year period.
Revenue by Segment
Forward Guidance
Hewlett Packard Enterprise provides guidance for the fourth quarter of fiscal year 2022 and reiterates fiscal 2022 revenue growth.
Positive Outlook
- Reiterates fiscal 2022 revenue growth of 3-4% adjusted for currency
- Fourth quarter fiscal 2022 GAAP diluted net EPS to be in the range of $0.32 to $0.40
- Fourth quarter fiscal 2022 non-GAAP diluted net EPS to be in the range of $0.52 to $0.60
- Fiscal 2022 GAAP diluted net EPS to be in the range of $1.20 to $1.28
- Fiscal 2022 non-GAAP diluted net EPS to be in the range of $1.96 to $2.04
Challenges Ahead
- Reflecting the unfavorable currency movements
- Constrained supply environment
- Exiting our Russia and Belarus business
- Transformation costs
Historical Earnings Impact
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Avg. Return Before/After Earnings
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