Hewlett Packard Enterprise (HPE) reported mixed first-quarter fiscal 2024 results, wherein the bottom line surpassed the Zacks Consensus Estimate but the top line missed the same.Hewlett Packard reported non-GAAP earnings of 48 cents per share for the first quarter, which beat the Zacks Consensus Estimate by 6.3%. The bottom line came at the higher end of management’s guidance range of 42-50 cents per share. However, the reported figure was 23.8% lower than the year-ago quarter and down 8.3% sequentially, m ...

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Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $6.8 billion, a decrease of 14% year-over-year in constant currency, primarily due to a softening networking market and GPU availability issues [27][12][9] - Non-GAAP gross margin improved to 36.2%, up 200 basis points year-over-year, reflecting a shift towards higher-margin revenue [12][28] - Non-GAAP diluted net earnings per share reached $0.48, exceeding the midpoint of guidance despite lower revenue [12][29] Business Line Data and Key Metrics Changes - Server revenues declined 23% year-over-year to $3.4 billion, impacted by backlog normalization and GPU supply constraints [31][12] - Intelligent Edge revenues were $1.2 billion, up 2% year-over-year, but demand softened due to customer digestion of prior shipments [33][12] - Hybrid cloud segment revenues were $1.2 billion, down 10% year-over-year, with strong growth in subscription revenue [34][12] Market Data and Key Metrics Changes - HPE GreenLake ARR grew 41% year-over-year to over $1.4 billion, indicating strong market demand for as-a-service offerings [14][28] - AI server orders reached $4 billion, with significant contributions from HPE Cray EX and ProLiant Gen11 solutions [15][31] - The company expects the networking market to remain weak throughout fiscal year 2024, with a potential recovery in the second half [10][38] Company Strategy and Development Direction - HPE is streamlining its reporting segments and focusing on a new specialized sales model to enhance execution and profitability [10][13] - The company is confident in its long-term strategy aligned with market mega trends, particularly in edge computing, hybrid cloud, and AI [14][12] - The pending acquisition of Juniper Networks is expected to enhance HPE's edge-to-cloud strategy and expand its networking business [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the networking market and GPU supply but expressed confidence in the long-term growth potential of AI and hybrid cloud segments [12][38] - The company anticipates a strong second half of fiscal year 2024, driven by AI systems revenue and traditional buying seasons [49][38] - Management emphasized the importance of cost management and operational discipline in navigating current market conditions [12][28] Other Important Information - The company generated $64 million in cash flow from operations but consumed $482 million in free cash flow during the quarter [36][12] - HPE's cash conversion cycle improved to seven days, reflecting better inventory management [37][12] - The company plans to maintain its dividend and focus on debt repayment to uphold an investment-grade credit rating [41][12] Q&A Session Summary Question: GPU availability and delays - Management noted that delays were primarily due to customers taking longer to prepare data center space and GPU supply constraints, with expectations for improvement in the future [45][12] Question: Revenue shortfall analysis - The revenue shortfall was mainly attributed to networking issues, with expectations for a stronger second half driven by AI systems revenue [48][49] Question: Changes in Intelligent Edge demand - Management indicated that demand softness was observed, but there was no significant channel inventory problem, and they expect a slight improvement in the back half of the year [51][52] Question: Backlog contribution to Intelligent Edge - Backlog has normalized, with expectations for slight improvements in the networking segment in the second half of the fiscal year [56][57] Question: Server market recovery - Management expects sequential improvement in server demand, driven by a shift to Gen11 and recovering demand [62][63] Question: AI revenue linkage to ARR growth - AI system orders are expected to contribute significantly to ARR growth, with many orders processed through the HPE GreenLake platform [66][69]

For the quarter ended January 2024, Hewlett Packard Enterprise (HPE) reported revenue of $6.76 billion, down 13.5% over the same period last year. EPS came in at $0.48, compared to $0.63 in the year-ago quarter.The reported revenue represents a surprise of -4.33% over the Zacks Consensus Estimate of $7.06 billion. With the consensus EPS estimate being $0.45, the EPS surprise was +6.67%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Hewlett Packard Enterprise (HPE) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this information technology products and services provider would post earnings of $0.50 per share when it actually produced earnings of $0.52, delivering a surpr ...

Hewlett Packard Enterprise (HPE) announced that it has enhanced Bethesda Health Group’s networking infrastructure by implementing HPE Aruba Networking Security Service Edge. The enhancement will help Bethesda offer continuous support across its residential communities throughout the day and via in-home services.Bethesda started transitioning from Cisco Systems (CSCO) networking infrastructure to HPE Aruba Networking EdgeConnect SD-WAN through the hands of InterVision. The healthcare provider migrated to HPE ...

HOUSTON--(BUSINESS WIRE)--To securely and seamlessly provide innovative, individualized, and compassionate care in 16 residential communities and via in-home services, 24 hours a day, Bethesda Health Group is adding HPE Aruba Networking Security Service Edge (SSE) to its end-to-end HPE Aruba Networking ESP (Edge Services Platform) solution by Hewlett Packard Enterprise (NYSE: HPE). The expansion builds upon Bethesda Health Group’s existing wired, wireless, and Software-Defined Wide Area Network (SD-WAN) ...

Hewlett Packard Enterprise (HPE) is slated to report first-quarter fiscal 2024 results on Feb 29 after market close.For the first quarter, Hewlett Packard projects non-GAAP earnings per share between 42 cents and 50 cents. The Zacks Consensus Estimate for earnings is pegged at 45 cents, indicating a year-over-year decline of 28.6%.HPE expects first-quarter revenues between $6.9 billion and $7.3 billion. The consensus mark for quarterly revenues is pegged at $7.07 billion, suggesting a decrease of 9.5% from ...

BARCELONA--(BUSINESS WIRE)--Hewlett Packard Enterprise (NYSE: HPE) announced it is working with TELUS, which is building Canada’s first 5G open radio access network (Open RAN), by providing infrastructure across 3,000 sites. Once completed, the new TELUS Open RAN 5G network will provide instantaneously-responsive connectivity enhancing the customer experience with faster connectivity and mobile access. Designed specifically to support high-performance telecommunications workloads, HPE ProLiant DL110 Gen1 ...

Hewlett Packard Enterprise (HPE) and the University of Maryland have collaborated to equip the latter with HPE’s Aruba Networking Edge Services Platform. The networking solution will be placed across the university campus featuring Wi-Fi 6E wireless access points and CX wired switches, all managed by artificial intelligence (AI).The university, in an attempt to future-proof its network, has chosen Wi-Fi 6E. Notably, the Wi-Fi 6E will be used to access the Amazon Web Services infrastructure and Canvas studen ...