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Jul 31, 2024

Hewlett Packard Enterprise Q3 2024 Earnings Report

Reported strong revenue growth driven by AI demand and improved profitability.

Key Takeaways

Hewlett Packard Enterprise reported a strong third quarter with revenue up 10% year-over-year, driven by AI system conversion. The company also improved profitability and raised EPS guidance for the year.

Revenue increased by 10% year-over-year.

ARR grew by 35% year-over-year.

GAAP EPS was $0.38, up 9% year-over-year.

Non-GAAP EPS was $0.50, up 2% year-over-year.

Total Revenue
$7.71B
Previous year: $7B
+10.1%
EPS
$0.5
Previous year: $0.49
+2.0%
ARR
$1.7B
Previous year: $1.3B
+30.8%
Gross Margin
31.6%
Previous year: 35.8%
-11.7%
Non-GAAP Gross Margin
31.8%
Previous year: 35.9%
-11.4%
Gross Profit
$2.44B
Previous year: $2.51B
-2.8%
Cash and Equivalents
$3.64B
Previous year: $2.92B
+24.8%
Free Cash Flow
$669M
Previous year: $955M
-29.9%
Total Assets
$60.9B
Previous year: $56.4B
+7.9%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

HPE estimates revenue to be in the range of $8.1 billion to $8.4 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.76 to $0.81 and non-GAAP diluted net EPS to be in the range of $0.52 to $0.57.

Positive Outlook

  • Revenue expected to be between $8.1 billion and $8.4 billion.
  • GAAP diluted net EPS to be in the range of $0.76 to $0.81.
  • Non-GAAP diluted net EPS to be in the range of $0.52 to $0.57.
  • Expects to capture share of the growing AI infrastructure market.
  • Continuing benefit of cost management efforts.

Revenue & Expenses

Visualization of income flow from segment revenue to net income