Hewlett Packard Enterprise Reports Fiscal 2022 First Quarter Results|||

Raising FY22 EPS outlook due to robust need and profitability



Q1 2022 Financial Highlights:

  • Orders: Strong client demand drives order growth up 20% from the prior twelvemonth period, the third sequent quarter of more than than 20% order growth

    • Equally-a-Service orders1
      increased 136% from the prior year period
  • Revenue: $7.0 billion, up 2% from the prior-yr period and in-line with our Q1 outlook
  • Gross margins drive improved quality of earnings despite ongoing supply chain constraints

    • GAAP of 33.7%, up 80 ground points sequentially and 20 basis points from the prior year menstruum
    • Non-GAAP of 33.ix%, upward 90 footing points sequentially and 20 basis points from the prior year period
  • Diluted internet earnings per share (“EPS”):

    • GAAP of $0.39, to a higher place the previously provided outlook of $0.xix to $0.27 per share
    • Not-GAAP of $0.53, above the previously provided outlook of $0.42 to $0.50 per share
  • Cash flow from operations of ($76) million and free greenbacks menstruum of ($577) million, reflecting normal seasonality and strategic inventory actions due to stiff customer demand

Capital Returns:

  • Returned $284 million to shareholders in the form of share repurchases and dividends
  • Alleged a regular cash dividend of $0.12 per share, payable on April eight, 2022

Outlook:

  • Reiterates financial 2022 revenue growth of 3-four% adjusted for currency
  • Second quarter Fiscal 2022: Estimates GAAP diluted net EPS to be in the range of $0.18 to $0.26 and non-GAAP diluted net EPS to be in the range of $0.41 to $0.49
  • Financial 2022: Raises both GAAP and not-GAAP diluted net EPS to be in the range of $1.36 to $i.fifty and $two.03 to $two.17, respectively
  • Financial 2022 gratuitous cash menstruationii: Reiterates costless greenbacks flow guidance to exist in the range of $ane.eight to $2.0 billion

HOUSTON–(Business WIRE)–Hewlett Packard Enterprise (NYSE: HPE) today appear financial results for the get-go quarter, ended Jan 31, 2022.


The quarter was characterized by robust customer demand and profitability, demonstrating the forcefulness of our differentiated border-to-cloud strategy and portfolio innovation,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “
It is clear from strong customer feedback and momentum across our businesses that we are increasingly well positioned to capitalize on the pregnant megatrends through our HPE GreenLake platform.”


We are off to a stiff start delivering against our FY22 commitments with our third quarter in a row of more than than 20% twelvemonth-over-year order growth bolstering our conviction for sustained revenue growth,” said Tarek Robbiati, EVP and CFO of Hewlett Packard Enterprise. “
We are also delivering a better quality of earnings demonstrated by our improved gross margin despite ongoing supply concatenation constraints that enabled u.s. to deliver Q1 EPS well in a higher place our outlook range and heighten our outlook for the total year.”

First Quarter Fiscal Year 2022 Results

Net acquirement
of $7.0 billion, down 5% sequentially and up 2% from the prior-twelvemonth period which is in-line with normal sequential seasonality.

Annualized acquirement run-charge per unit (“ARR”)3

of $798 meg, up 23% from the prior-year menstruum and total as-a-Service ordersi
were upwardly 136% from the prior-yr period. Based on strong customer need and growth in orders, we reiterate our 2021 Securities Annotator Coming together ARR guidance of 35-45% Compounded Annual Growth Charge per unit from fiscal yr 2021 to financial year 2024.

GAAP gross margins
of 33.7%, upward 80 ground points sequentially and 20 footing points from the prior-twelvemonth period, and not-GAAP gross margins of 33.ix%, upwardly 90 basis points sequentially and xx basis points from the prior-twelvemonth menses.

GAAP diluted internet EPS
was $0.39, compared to $0.17 in the prior-twelvemonth period and above the previously provided outlook of $0.19 to $0.27 per share.

Non-GAAP diluted net EPS
was $0.53, compared to $0.52 in the prior-year period and above the previously provided outlook of $0.42 to $0.l per share. First quarter non-GAAP net earnings and non-GAAP diluted cyberspace EPS exclude after-tax adjustments of $184 million and $0.14 per diluted share, respectively, primarily related to stock-based compensation expense, transformation costs, and the amortization of intangible assets.

Cash flow from operations
of ($76) million, down $1.0 billion from the prior-year period.

Free cash flow
of ($577) million, downwardly $1.1 billion from the prior year reflecting normal seasonality and strategic working majuscule actions due to stiff customer demand.

Majuscule returns to shareholders
of $284 million in the form of share repurchases and dividends.

Segment Results

  • Intelligent Edge acquirement was $901 million, upward eleven% from the prior-year period in bodily dollars and when adjusted for currency, with 17.4% operating profit margin, compared to xix.0% in the prior-year period. Aruba Services revenue was upwardly double-digits from the prior-twelvemonth menstruation and Intelligent Edge as-a-Service ARRthree
    was upwardly strong double-digits from the prior-twelvemonth catamenia.
  • Loftier Functioning Computing & Bogus Intelligence (“HPC & AI”) revenue was $790 one thousand thousand, up iv% from the prior-year period in bodily dollars and when adjusted for currency, with (0.9%) operating profit margin, compared to 5.seven% from the prior-year menses. The slight operating loss was driven past delayed customer acceptances and supply concatenation constraints. We remain on track to exceed the expected xi% marketplace CAGR from FY21-24.
  • Compute revenue was $iii.0 billion, up one% from the prior-year catamenia or flat when adapted for currency, with 13.eight% operating profit margin, compared to eleven.4% from the prior-year catamenia. Margin expansion was driven by strategic pricing actions more than offsetting rising input costs.
  • Storage acquirement was $1.2 billion, down iii% from the prior-year menstruum in actual dollars and when adjusted for currency, with 14.5% operating profit margin, compared to 19.half dozen% from the prior-twelvemonth menstruum reflecting supply chain constraints, specially in HPE-endemic IP offerings.
  • Fiscal Services revenue was $842 million, down 2% from the prior-twelvemonth menstruum or 1% when adjusted for currency, with 12.iv% operating profit margin, compared to 9.8% from the prior-year period. Net portfolio avails of approximately $thirteen.0 billion, downwards 3% from the prior-yr period or apartment when adjusted for currency. The business organization delivered return on equity of 19.7%, up three.2 points from the prior-year menstruum.
Popular:   Advanced Imaging Society Announces Winners of 12th Annual Lumiere Awards|||

Dividend

Board of Directors has declared a regular greenbacks dividend of $0.12 per share on the company’south common stock, payable on Apr 8, 2022, to stockholders of record equally of the close of business concern on March eleven, 2022.

Financial 2022 second quarter outlook:

Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.xviii to $0.26 and non-GAAP diluted net EPS to be in the range of $0.41 to $0.49. Financial 2022 second quarter not-GAAP diluted net EPS estimates exclude after-tax adjustments of approximately $0.23 per diluted share, primarily related to transformation costs, stock-based bounty expense and the amortization of intangible assets.

Financial 2022 outlook:

Hewlett Packard Enterprise raises GAAP diluted net EPS outlook of $1.36 to $ane.50 and not-GAAP diluted net EPS outlook of $2.03 to $2.17. Fiscal 2022 non-GAAP diluted net EPS estimates exclude later-tax adjustments of approximately $0.67 per diluted share, primarily related to transformation costs, stock-based compensation expense and the acquittal of intangible assets.

Reiterates free cash menstruumtwo
guidance of $ane.8 to $ii.0 billion.

ane
Equally-a-Service (“AAS”) orders are an overlay across all business organisation segments contributing to HPE’south consumption-based services (both recurring and non-recurring), and includes hardware, every bit well as GreenLake as-a-Service, Aruba SaaS, CMS SaaS, and other Software assets.

ii
Hewlett Packard Enterprise provides sure guidance on a not-GAAP basis, every bit the Company cannot predict some elements that are included in reported GAAP results. Refer to the give-and-take of non-GAAP financial measures below for more than information.

3
Annualized Revenue Run-Rate (“ARR”) is a financial metric used to assess the growth of the Consumption Services (“CS”) offerings. ARR represents the annualized revenue of all internet HPE GreenLake services acquirement, related financial services revenue (which includes rental income from operating leases and interest income for capital leases), and software-every bit-a-Service, software consumption acquirement, and other equally-a-Service offerings recognized during a quarter and multiplied by four. We apply ARR every bit a performance metric. ARR should be viewed independently of cyberspace revenue and is not intended to be combined with it.

Nigh Hewlett Packard Enterprise

Hewlett Packard Enterprise (NYSE: HPE) is the global edge-to-cloud company that helps organizations accelerate outcomes by unlocking value from all of their information, everywhere. Congenital on decades of reimagining the hereafter and innovating to accelerate the style people live and work, HPE delivers unique, open and intelligent engineering solutions as a service. With offerings spanning Cloud Services, Compute, High Performance Computing & AI, Intelligent Edge, Software, and Storage, HPE provides a consistent experience across all clouds and edges, helping customers develop new business organisation models, engage in new means, and increment operational functioning. For more information, visit: www.hpe.com

Use of non-GAAP fiscal information and fundamental functioning metrics

To supplement Hewlett Packard Enterprise’s condensed consolidated financial argument data presented on a generally accepted accounting principles (“GAAP”) basis, Hewlett Packard Enterprise provides financial measures, including revenue on a abiding currency ground, non-GAAP gross turn a profit, non-GAAP gross turn a profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, not-GAAP income tax rate, non-GAAP net earnings, not-GAAP diluted net earnings per share, cash menstruation from operations, and free cash catamenia, each excluding litigation judgment, internet of taxes paid. Hewlett Packard Enterprise also provides forecasts of not-GAAP diluted net earnings per share and free cash flow. A reconciliation of adjustments to GAAP financial measures for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In improver, an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its concern, the substance behind Hewlett Packard Enterprise’south conclusion to use these not-GAAP measures, the material limitations associated with the use of these not-GAAP measures, the way in which Hewlett Packard Enterprise’s direction compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’southward management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP fiscal measures” further below. This additional non-GAAP financial data is not meant to be considered in isolation or as a substitute for revenue, gross profit, gross profit margin, operating profit (earnings from operations), operating profit margin, net earnings, diluted net earnings per share, cash, greenbacks equivalents and restricted cash, cash flow from operations, or investments in property, institute and equipment prepared in accord with GAAP.

In addition to the supplemental non-GAAP financial information, Hewlett Packard Enterprise besides presents annualized revenue run-rate (“ARR”) and equally-a-Service (“AAS”) orders as operation metrics. ARR is a financial metric used to appraise the growth of the Consumption Services (“CS”) offerings. ARR represents the annualized value of all recurring internet HPE GreenLake services acquirement, related financial services revenue (which includes rental income for operating leases and interest income for capital leases), and Software-equally-a-Service (“SaaS”), software consumption revenue, and other as-a-Service offerings recognized during a quarter and multiplied by four. AAS orders are an overlay across all business segments contributing to HPE’s consumption-based services (both recurring and non-recurring revenues), and includes hardware, as well as HPE GreenLake equally-a-Service, Aruba SaaS, CMS SaaS, and other Software assets. ARR & AAS orders should be viewed independently of internet revenue and deferred revenue and are not intended to exist combined with any of these items.

Popular:   How Managed Service Providers can sell disaster recovery services

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions. If the risks or uncertainties always materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries (“Hewlett Packard Enterprise”) may differ materially from those expressed or implied past such frontwards-looking statements and assumptions. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will”, “should” and similar expressions are intended to identify such frontward-looking statements. All statements other than statements of historical fact are statements that could be accounted forrad-looking statements, including simply non express to the scope and duration of the novel coronavirus pandemic (“COVID-19”), our actions in response thereto, and its and their impacts on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results, and the globe economy; whatever projections of revenue, margins, expenses, investments, effective income revenue enhancement rates, involvement rates, the touch on of tax law changes and related guidance and regulations, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, harm charges, hedges and derivatives and related offsets, guild backlog, benefit plan funding, deferred tax avails, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; any projections of the amount, execution, timing, and results of any transformation or bear on of cost savings, restructuring plans, including estimates and assumptions related to the anticipated benefits, cost savings, or charges of implementing transformation and restructuring plans; whatever statements of the plans, strategies, and objectives of management for futurity operations, besides as the execution of corporate transactions or contemplated acquisitions, research and development expenditures, and any resulting benefit, cost savings, charges, or revenue or profitability improvements; any statements apropos the expected development, functioning, market share, or competitive performance relating to products or services; any statements regarding electric current or hereafter macroeconomic trends or events and the impact of those trends and events on Hewlett Packard Enterprise and its fiscal functioning; any statements regarding pending investigations, claims, or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events, including but not limited to supply concatenation constraints and the ongoing conflict betwixt Ukraine and Russia; the demand to effectively manage third-party suppliers, distribute Hewlett Packard Enterprise’s products, and deliver Hewlett Packard Enterprise’south services; the protection of Hewlett Packard Enterprise’due south intellectual holding assets, including intellectual property licensed from third parties and intellectual belongings shared with its quondam parent; risks associated with Hewlett Packard Enterprise’s international operations (including pandemics and public health bug, such equally the outbreak of COVID-19); the development of and transition to new products and services and the enhancement of existing products and services to come across customer needs and respond to emerging technological trends; the execution and operation of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients, and partners, including any touch on thereon resulting from events such equally the COVID-xix pandemic; the hiring and retention of key employees; the execution, integration, and other risks associated with business organisation combination and investment transactions; the touch on of changes to ecology, global trade, and other governmental regulations; changes in our product, lease, intellectual belongings, or real estate portfolio; the payment or not-payment of a dividend for whatsoever period; the efficacy of using non-GAAP, rather than GAAP, fiscal measures in business concern projections and planning; the judgments required in connection with determining revenue recognition; impact of company policies and related compliance; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending investigations, claims, and disputes; and other risks that are described herein, including but not limited to the risks described in Hewlett Packard Enterprise’s Annual Written report on Form ten-K for the fiscal year ended October 31, 2021, Current Reports on Class 8-K, and in other filings made by Hewlett Packard Enterprise from time to fourth dimension with the Securities and Exchange Commission.

As in prior periods, the financial information set up along in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the Hewlett Packard Enterprise Quarterly Report on Form x-Q for the financial quarter ended January 31, 2022. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law.

Popular:   AWS Local Zones expanding globally|||

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

For the three months concluded

Jan 31,

2022

October 31,

2021

Jan 31,

2021

In millions, except per share amounts

Internet revenue

$

6,961

$

7,354

$

six,833

Costs and expenses:

Cost of sales

4,617

4,935

4,545

Research and development

504

502

468

Selling, general and administrative

1,201

1,280

1,159

Amortization of intangible assets

73

78

110

Transformation costs

111

197

311

Disaster charges

10

Acquisition, disposition and other related charges

7

2

eighteen

Full costs and expenses

6,513

7,004

6,611

Earnings from operations

448

350

222

Involvement and other, cyberspace

(5

)

(106

)

(44

)

Tax indemnification and related adjustments

(17

)

five

(16

)

Non-service net periodic do good credit

36

17

17

Litigation judgment

2,351

Earnings from disinterestedness interests

31

71

26

Earnings before benefit (provision) for taxes

493

two,688

205

Do good (provision) for taxes

20

(135

)

eighteen

Net earnings

$

513

$

two,553

$

223

Net earnings per share:

Basic

$

0.39

$

one.95

$

0.17

Diluted

$

0.39

$

one.91

$

0.17

Cash dividends declared per share

$

0.12

$

0.12

$

0.12

Weighted-boilerplate shares used to compute net earnings per share:

Basic

i,304

i,312

1,300

Diluted

one,325

1,335

1,315

HEWLETT PACKARD ENTERPRISE Visitor AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

For the iii months ended

January 31, 2022

October 31, 2021

January 31, 2021

In millions, except percentages

GAAP net revenue

$

6,961

$

7,354

$

vi,833

GAAP cost of sales

4,617

four,935

4,545

GAAP gross profit

$

ii,344

$

two,419

$

two,288

Non-GAAP adjustments

Amortization of initial straight costs

$

1

$

2

$

2

Stock-based compensation expense

15

7

13

Non-GAAP gross turn a profit

$

2,360

$

2,428

$

2,303

GAAP gross profit margin

33.7

%

32.9

%

33.5

%

Non-GAAP adjustments

0.2

%

0.1

%

0.ii

%

Not-GAAP gross profit margin

33.9

%

33.0

%

33.vii

%

For the 3 months concluded

Jan 31, 2022

Oct 31, 2021

January 31, 2021

In millions, except percentages

GAAP earnings from operations

$

448

$

350

$

222

Non-GAAP adjustments

Amortization of initial directly costs

one

two

two

Acquittal of intangible assets

73

78

110

Transformation costs

111

197

311

Disaster charges

10

Stock-based compensation expense

128

78

110

Conquering, disposition and other related charges

7

two

18

Non-GAAP earnings from operations

$

768

$

717

$

773

GAAP operating profit margin

half-dozen.iv

%

4.8

%

iii.2

%

Not-GAAP adjustments

4.6

%

4.nine

%

eight.i

%

Non-GAAP operating profit margin

11.0

%

9.7

%

11.three

%

HEWLETT PACKARD ENTERPRISE Company AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

For the 3 months ended

Jan 31,

2022

Diluted internet

earnings

per share

Oct 31,

2021

Diluted net

earnings

per share

January 31,

2021

Diluted net

earnings

per share

In millions, except per share amounts

GAAP net earnings

$

513

$

0.39

$

two,553

$

ane.91

$

223

$

0.17

Non-GAAP adjustments:

Amortization of initial directly costs

1

2

2

Amortization of intangible assets

73

0.06

78

0.06

110

0.08

Transformation costs

111

0.08

197

0.xv

311

0.23

Disaster charges

10

0.01

Stock-based bounty expense

128

0.10

78

0.06

110

0.08

Acquisition, disposition and other related charges

7

0.01

ii

18

0.01

Tax indemnification and related adjustments

17

0.01

(5

)

16

0.02

Non-service net periodic benefit credit

(36

)

(0.03

)

(17

)

(0.01

)

(17

)

(0.01

)

Litigation judgment

(two,351

)

(ane.76

)

Early debt redemption costs

100

0.07

Earnings from equity interests(a)

17

0.01

xviii

0.01

34

0.03

Adjustments for taxes

(134

)

(0.10

)

23

0.02

(128

)

(0.09

)

Non-GAAP internet earnings

$

697

$

0.53

$

688

$

0.52

$

679

$

0.52

For the three months ended

January 31, 2022

October 31, 2021

January 31, 2021

In millions

Net cash (used in) provided by operating activities

$

(76

)

$

2,956

$

963

Litigation judgment, internet of taxes paid

(ii,172

)

Internet cash (used in) provided by operating activities, excluding litigation judgment, net of taxes paid

(76

)

784

963

Investment in property, establish and equipment

(624

)

(770

)

(513

)

Gain from sale of holding, plant and equipment

123

80

113

Free cash catamenia

$

(577

)

$

94

$

563

HEWLETT PACKARD ENTERPRISE Visitor AND SUBSIDIARIES

Condensed Consolidated Rest Sheets

As of

January 31, 2022

October 31, 2021

(Unaudited)

(Audited)

In millions, except par value

Assets

Current assets:

Cash and cash equivalents

$

3,861

$

three,996

Accounts receivable, net of allowances

3,432

3,979

Financing receivables, net of allowances

iii,815

3,932

Inventory

v,321

4,511

Other electric current assets

2,913

two,460

Total current avails

nineteen,342

xviii,878

Holding, constitute and equipment

5,498

5,613

Long-term financing receivables and other assets

11,528

xi,670

Investments in equity interests

2,250

2,210

Goodwill and intangible assets

19,255

19,328

Total assets

$

57,873

$

57,699

LIABILITIES AND STOCKHOLDERS’ Equity

Current liabilities:

Notes payable and short-term borrowings

$

3,795

$

3,552

Accounts payable

vi,549

7,004

Employee compensation and benefits

i,160

one,778

Taxes on earnings

166

169

Deferred acquirement

iii,457

3,408

Accrued restructuring

225

290

Other accrued liabilities

5,121

4,486

Full current liabilities

20,473

20,687

Long-term debt

10,277

ix,896

Other non-electric current liabilities

six,758

seven,099

Stockholders’ equity

HPE stockholders’ equity:

Mutual stock, $0.01 par value (9,600 shares authorized; 1,300 and 1,295 shares issued and outstanding at January 31, 2022 and October 31, 2021, respectively)

13

thirteen

Additional paid-in majuscule

28,422

28,470

Accumulated arrears

(5,239

)

(5,597

)

Accumulated other comprehensive loss

(ii,878

)

(ii,915

)

Total HPE stockholders’ equity

twenty,318

19,971

Non-decision-making interests

47

46

Total stockholders’ equity

xx,365

20,017

Full liabilities and stockholders’ disinterestedness

$

57,873

$

57,699

Contacts

Read total story here

Source: https://www.dailyhostnews.com/hewlett-packard-enterprise-reports-fiscal-2022-first-quarter-results