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Oct 31, 2024

Hewlett Packard Enterprise Q4 2024 Earnings Report

Hewlett Packard Enterprise reported exceptional Q4 results, driving full-year revenue and EPS outperformance with strong cash flow.

Key Takeaways

Hewlett Packard Enterprise reported an exceptional fourth quarter with record quarterly revenue, exceeding full-year commitments for revenue, EPS, and free cash flow. Revenue reached $8.5 billion, up 15% year-over-year, and non-GAAP EPS was $0.58, up 12% year-over-year.

Revenue was $8.5 billion, up 15% year-over-year.

GAAP EPS was $0.99, up 102% year-over-year.

Non-GAAP EPS was $0.58, up 12% year-over-year.

Free cash flow was $1.5 billion.

Total Revenue
$8.46B
Previous year: $7.35B
+15.1%
EPS
$0.58
Previous year: $0.52
+11.5%
ARR
$1.9B
Previous year: $1.3B
+46.2%
Gross Margin
30.8%
Previous year: 34.8%
-11.5%
Non-GAAP Gross Margin
30.9%
Gross Profit
$2.61B
Previous year: $2.56B
+1.8%
Cash and Equivalents
$14.8B
Previous year: $4.27B
+247.7%
Free Cash Flow
$1.5B
Previous year: $2.32B
-35.4%
Total Assets
$71.3B
Previous year: $57.2B
+24.7%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

HPE estimates revenue to grow by mid-teens percent when compared to revenue for the prior-year period. HPE estimates GAAP diluted net EPS to be in the range of $0.31 to $0.36 and non-GAAP diluted net EPS to be in the range of $0.47 to $0.52.

Positive Outlook

  • Revenue is expected to grow by mid-teens percent compared to the prior year.
  • GAAP diluted net EPS is estimated to be in the range of $0.31 to $0.36.
  • Non-GAAP diluted net EPS is estimated to be in the range of $0.47 to $0.52.
  • Juniper Networks acquisition has received approval from key jurisdictions.
  • The transaction is expected to close in the early part of 2025.

Challenges Ahead

  • U.S. Department of Justice is continuing to review the Juniper Networks transaction.
  • First quarter non-GAAP diluted net EPS excludes net after-tax adjustments of $0.16 per diluted share.
  • These adjustments are primarily related to stock-based compensation.
  • These adjustments are also related to acquisition, disposition and other related charges.
  • These adjustments are also related to amortization of intangible assets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income