HPE Reports Fiscal 2018 Second Quarter Results

  • Second quarter net revenue of $7.5 billion, up 10% from the prior-year period, and up 6% when adjusted for currency
  • Second quarter GAAP diluted net earnings per share of $0.49, above the previously provided outlook of $0.10 to $0.14 per share, primarily due to separation related tax indemnification adjustments
  • Second quarter non-GAAP diluted net earnings per share of $0.34, above the previously provided outlook of $0.29 to $0.33 per share
  • Returned $1 billion to shareholders in the form of share repurchases and dividends in line with the previously announced commitment to return $7 billion to shareholders through FY19
  • Raised dividend by 50 percent starting in Q3 FY18 aligned with prior communications
  • Raised fiscal 2018 GAAP diluted net earnings per share outlook to $1.70 to $1.80, and fiscal 2018 non-GAAP diluted net earnings per share outlook to $1.40 to $1.50

PALO ALTO, Calif., May 22, 2018 (GLOBE NEWSWIRE) -- Hewlett Packard Enterprise (NYSE:HPE) today announced financial results for its fiscal 2018 second quarter, ended April 30, 2018.

Second Quarter Fiscal Year 2018 Results
Second quarter net revenue of $7.5 billion was up 10% from the prior year and up 6% when adjusted for currency.

Second quarter GAAP diluted net earnings per share (“EPS”) from continuing operations was $0.54, up from GAAP diluted net EPS from continuing operations of ($0.29) in the prior-year period. Second quarter non-GAAP diluted net EPS from continuing operations was $0.34, up from non-GAAP diluted net EPS from continuing operations of $0.17 in the prior-year period. Second quarter non-GAAP net earnings from continuing operations and non-GAAP diluted net EPS from continuing operations exclude after-tax adjustments of $314 million and $0.20 per diluted share, respectively, primarily related to the impact of tax indemnification adjustments, U.S. tax reform, transformation costs, amortization of intangible assets, an adjustment to loss in equity interests, separation costs, acquisition and other related charges, restructuring charges, and income tax valuation allowances and separation taxes.

“I am very pleased with our strong performance in Q2,” said Antonio Neri, President and CEO, HPE.  “We delivered revenue growth in all business segments, expanded overall profitability, completed important milestones in our HPE Next initiative and continued to invest in innovation. I’m confident we will deliver on our annual FY18 outlook.”

HPE fiscal 2018 second quarter continuing operations financial performance

  Q2 FY18 Q2 FY17 Y/Y
GAAP net revenue ($B)$7.5$6.89.7%
GAAP operating margin5.3%2.9%2.4 pts.
GAAP net earnings ($B)$0.9($0.5)NM
GAAP diluted net earnings per share$0.54($0.29)NM
Non-GAAP operating margin8.6%5.9%2.7 pts.
Non-GAAP net earnings ($B)$0.5$0.386.8%
Non-GAAP diluted net earnings per share$0.34$0.17100.0%
Cash flow from operations ($B)$0.2$0.7($0.5)

Information about HPE’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.

Outlook
For the fiscal 2018 third quarter, Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.19 to $0.23 and non-GAAP diluted net EPS to be in the range of $0.35 to $0.39. Fiscal 2018 third quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.16 per diluted share, primarily related to transformation costs and the amortization of intangible assets.

For fiscal 2018, Hewlett Packard Enterprise now estimates GAAP diluted net EPS to be in the range of $1.70 to $1.80 and non-GAAP diluted net EPS to be in the range of $1.40 to $1.50. Fiscal 2018 non-GAAP diluted net EPS estimates exclude after-tax impact of approximately $0.30 per diluted share, primarily related to transformation costs and the amortization of intangible assets, offset by the impact of U.S. tax reform.

Fiscal 2018 second quarter segment results

  • Hybrid IT revenue was $6.0 billion, up 7% year over year and up 4% when adjusted for currency, with a 10.3% operating margin. Compute revenue was up 6%, up 2% when adjusted for currency, Storage revenue was up 24%, up 22% when adjusted for currency, DC Networking revenue was up 2%, down 1% when adjusted for currency, and Pointnext revenue was up 1%, down 1% when adjusted for currency.  
  • Intelligent Edge revenue was $710 million, up 17% year over year and up 14% when adjusted for currency, with a 6.5% operating margin. HPE Aruba Product revenue was up 18%, up 14% when adjusted for currency, HPE Aruba Services revenue was up 10%, up 11% when adjusted for currency. 
  • Financial Services revenue was $916 million, up 5% year over year and up 1% when adjusted for currency, net portfolio assets were up 3%, and financing volume was flat year over year. The business delivered an operating margin of 7.9%.

Bond Redemption
HPE intends to redeem on June 29, 2018, $1.6 billion aggregate principal amount of its outstanding 2.850% Senior Notes due 2018, CUSIP Numbers: 42824CAC3, 42824CAU3, U42832AC6, at a price equal to 100% of the principal amount thereof plus a “make-whole” premium determined pursuant to the terms of the Indenture governing the Notes and accrued and unpaid interest. HPE has instructed The Bank of New York Mellon Trust Company, N.A., as the trustee for the Notes, to distribute a Notice of Redemption to all registered holders of the applicable Notes today. Copies of such Notice of Redemption and additional information relating to the procedure for redemption of the Notes may be obtained from The Bank of New York Mellon Trust Company, N.A.

About Hewlett Packard Enterprise
Hewlett Packard Enterprise is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. HPE enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future.

Use of non-GAAP financial information
To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a generally accepted accounting principles (GAAP) basis, Hewlett Packard Enterprise provides revenue on a constant currency basis and revenue adjusted for divestitures and currency, as well as non-GAAP operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP income tax rate, non-GAAP net earnings from continuing operations, non-GAAP net (loss) earnings from discontinued operations, non-GAAP diluted net earnings per share from continuing operations, non-GAAP diluted net (loss) earnings per share from discontinued operations, gross cash, free cash flow, net capital expenditures, net debt, net cash, operating company net debt and operating company net cash financial measures. Hewlett Packard Enterprise also provides forecasts of non-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 addition, an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its business, the substance behind Hewlett Packard Enterprise’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Hewlett Packard Enterprise’s management compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, operating profit, operating margin, net earnings from continuing operations, net (loss) earnings from discontinued operations, diluted net earnings per share from continuing operations, diluted net (loss) earnings per share from discontinued operations, cash and cash equivalents, cash flow from operations, investments in property, plant and equipment, or total company debt prepared in accordance with GAAP.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15  Next Page »



Review Article Be the first to review this article


Featured Video
Jobs
Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
Upcoming Events
International Conference on Geomatics, Geomapplica 2018 at Syros - Mykonos islands Greece - Jun 25 - 29, 2018
18 International Multidisciplinary Scientific GeoConference SGEM 2018 at Paradise Blue 5 *****, Congress Center Albena Resort & Spa Bulgaria - Jun 30 - 9, 2018
2018 Esri User Conference at San Diego Convention Center San Diego CA - Jul 9 - 13, 2018
SUE Association at Capitol Skyline Hotel 10 “I” Eye Street, SW Washington, DC - Jul 26, 2018
LaserTech
Teledyne Optech
Teledyne:
Interdrone 2018



Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise