Hewlett Packard Enterprise (HPE) shares have lost 36.1% in the past three months, underperforming the Zacks Computer - Integrated Systems industry, Zacks Computer and Technology sector and the S&P 500 index’s decline of 7.9%, 13.6% and 5.6%, respectively.HPE 3 Month Price Performance ChartImage Source: Zacks Investment ResearchThe recent decline in HPE’s stock price stems from broader market weakness. Investor sentiment has soured amid rising trade tension, with additional tariffs raising fears of escalatin ...

Hewlett Packard Enterprise (NYSE: HPE ) is the same company that split from the legendary HP in 2015 and has been actively moving along its development path ever since. Today, HPE is about servers, data storageMy professional background spans multiple continents and includes experience in private banking, corporate finance, and strategic advisory. For several years, I developed and led a private banking department in Dubai, where I crafted tailored investment solutions to meet the unique needs of affluent c ...

Hewlett Packard Enterprise Co. HPE investors have a technical red flag flashing—the dreaded Death Cross. The stock has tumbled 23.24% year-to-date and 18.78% in the past month, and now, a bearish crossover of the 50-day and 200-day simple moving averages suggests more downside could be ahead.While HPE's AI collaboration with Nvidia Corp NVDA is generating buzz, the technicals tell a different story.Read Also: Nvidia Stock Climbs As AI, Tariff News Spark Buying InterestHPE Stock: A Strongly Bearish Trend Cha ...

Hewlett Packard Enterprise (HPE) reported first-quarter fiscal 2025 non-GAAP earnings of 49 cents per share, which missed the Zacks Consensus Estimate by 2%. The figure rose 2% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.HPE’s revenues increased 16.3% year over year to $7.85 billion and surpassed the Zacks Consensus Estimate by 0.55%. The top line grew on the back of Server, Hybrid Cloud and Financial services segments, driven by increased sales in artificial intell ...

Financial Performance - For the three months ended January 31, 2025, GAAP net revenue was $7.854 billion, an increase from $6.755 billion in the same period of fiscal 2024, representing a growth of approximately 16.2%[266]. - GAAP gross profit for the same period was $2.295 billion, with a gross profit margin of 29.2%, down from $2.457 billion and 36.4% in fiscal 2024[266]. - The company reported a free cash flow of negative $877 million for the three months ended January 31, 2025, compared to negative $482 million for the same period in 2024[243]. - Free cash flow (FCF) decreased to $(877) million for the three months ended January 31, 2025, compared to $(482) million in the same period of fiscal 2024[273]. - Non-GAAP net earnings attributable to HPE exclude certain charges, including those related to equity interests and taxes, to provide a clearer view of operational performance[283]. Cash Flow and Liquidity - For the three months ended January 31, 2025, net cash used in operating activities increased by $0.5 billion compared to the same period in fiscal 2024, primarily due to unfavorable changes in other assets and liabilities[244]. - The company expects internally generated cash flows to be generally sufficient to support operating businesses and capital expenditures for at least the next twelve months[233]. - The company anticipates that funds from operations and access to capital markets will meet liquidity requirements for the foreseeable future[233]. - As of January 31, 2025, cash, cash equivalents, and restricted cash totaled $13.852 billion, while total debt was $17.877 billion[240]. - The cash conversion cycle increased to 5 days as of January 31, 2025, compared to a negative 12 days as of October 31, 2024[245]. Investments and Divestitures - The company completed the divestiture of its CTG business to HCLTech on December 1, 2024, receiving net proceeds of $210 million and recognizing a gain of $244 million[238]. - The company divested 30% of H3C's total issued share capital on September 4, 2024, receiving $2.1 billion in pre-tax consideration, which is expected to result in annualized cost savings of approximately $120 million[282]. - The company incurred a gain of $244 million from the sale of CTG on December 1, 2024, which is considered a discrete event for non-GAAP calculations[283]. - Future cash payments of approximately $159 million are expected in connection with approved restructuring plans, with $47 million to be paid through the remainder of fiscal 2025[260]. Debt and Financing Activities - The company issued $9.0 billion of senior unsecured notes and $1.5 billion of Preferred Stock in September 2024 to fund a portion of the acquisition of Juniper Networks[239]. - Net cash used in financing activities increased by $0.9 billion to $0.8 billion for the same period, primarily due to lower proceeds from debt[251]. - The company maintains a revolving credit facility and two commercial paper programs, with no changes since October 31, 2024[254]. Operational Metrics - Days of sales outstanding (DSO) increased to 40 days as of January 31, 2025, compared to 38 days as of October 31, 2024[245]. - DSO (Days Sales Outstanding) decreased due to higher early collections, while DOS (Days of Sales) increased due to higher inventory levels from strategic purchases for AI systems[246][247]. Cost Management - The company anticipates making contributions of approximately $143 million to non-U.S. pension plans for the remainder of fiscal 2025[259]. - The projected non-GAAP income tax rate for fiscal 2025 is set at 15%, consistent with the previous fiscal year, reflecting the company's tax structure and positions[289]. - The company expects future annualized cost savings of approximately $120 million following the H3C divestiture and related severance actions[282]. - Non-GAAP measures are used to supplement GAAP results, providing a clearer view of financial performance without the impact of non-cash expenses and discrete events[287].

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $7.9 billion, representing a 17% year-over-year growth, marking the fourth consecutive quarter of accelerated revenue growth [36][38] - Non-GAAP diluted net earnings per share were 49 cents, consistent with the company's outlook range [41] - Non-GAAP gross margin was 29.4%, down 680 basis points year-over-year, primarily due to a higher mix of server revenue and lower contributions from Intelligent Edge [39] - Free cash flow was negative $877 million, in line with normal seasonal patterns [54] Business Line Data and Key Metrics Changes - Server revenue reached $4.3 billion, up 30% year-over-year, although it fell sequentially due to the timing of AI systems deals [42] - Intelligent Edge revenue was $1.1 billion, up 2% quarter-over-quarter but down 4% year-over-year [48] - Hybrid cloud revenue grew 11% year-over-year to $1.4 billion, although it declined 12% sequentially [50] - Financial services generated $873 million in revenue, up 2% year-over-year and flat quarter-over-quarter [53] Market Data and Key Metrics Changes - The company experienced double-digit year-over-year orders growth across all key geographies and products, including campus switching [20] - AI systems revenue was $900 million in Q1, up from about $400 million last year, but down sequentially as expected due to chip availability and customer readiness [44][24] - The AI systems backlog was $3.1 billion, up 29% quarter-over-quarter [22] Company Strategy and Development Direction - The company plans to reduce its employee base by 5% over the next twelve to eighteen months, targeting approximately 2,500 positions to better align its cost structure with its business mix and long-term strategy [16] - The company is committed to closing the Juniper acquisition, which is expected to deliver at least $450 million in gross annual run rate synergies to shareholders within three years [10] - The company aims to leverage its global supply chain to mitigate the impact of recent tariff policies [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while Q1 performance met expectations, execution could have been better, particularly in the server segment [13][33] - The company expects continued pressure on server operating margins in the near term but anticipates improvements in the back half of fiscal 2025 [15][34] - Management expressed confidence in achieving revenue growth of 7% to 11% for fiscal 2025, with a significant portion weighted towards the second half [60] Other Important Information - The company is implementing cost-saving measures, targeting discretionary spending, and has reduced non-GAAP operating expenses to a record low of 19% of revenue [40] - The company expects to achieve at least $350 million in gross savings by fiscal 2027, with about 20% of the savings expected by the end of this year [57] Q&A Session Summary Question: How much of the operating profit dollar headwind is from tariff assumptions? - Management indicated that the guidance includes a seven cents impact from tariffs for the year, with four cents expected in Q2, primarily affecting the server business [91][92] Question: What gives confidence in revenue growth and operating margin expansion in the back half of the year? - Management highlighted three critical areas: improved server execution, mitigation of tariffs, and the impact of the cost efficiency program as drivers for profitability [122] Question: How is the customer mix changing? - Management noted a balanced approach targeting both service provider model builders and enterprise customers, with a focus on maintaining a solid pipeline and addressing the needs of various segments [110][112]

For the quarter ended January 2025, Hewlett Packard Enterprise (HPE) reported revenue of $7.85 billion, up 16.3% over the same period last year. EPS came in at $0.49, compared to $0.48 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $7.81 billion, representing a surprise of +0.55%. The company delivered an EPS surprise of -2.00%, with the consensus EPS estimate being $0.50.While investors closely watch year-over-year changes in headline numbers -- revenue and earning ...

Hewlett Packard Enterprise (HPE) came out with quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2%. A quarter ago, it was expected that this information technology products and services provider would post earnings of $0.55 per share when it actually produced earnings of $0.58, delivering a surpris ...

Hewlett Packard Enterprise reported solid revenue growth for its first quarter of fiscal 2025, while facing pressure on cash flow and margins.Hewlett Packard Enterprise (HPE -4.92%), a technology company specializing in edge-to-cloud platforms, released its first quarter fiscal 2025 results on March 6, 2025. The report highlighted a 16% year-over-year revenue increase to $7.9 billion, surpassing analyst estimates of $7.814 billion. Despite this, the company reported non-GAAP earnings per share (EPS) of $0.4 ...

Antonio Neri, CEO of Hewlett Packard Enterprise, speaks during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, October 20, 2023.Hewlett Packard Enterprise shares slid 16% in extended trading on Thursday as the data center equipment maker issued quarterly and full-year guidance that came in below consensus.Here's how the company did in the fiscal first quarter in comparison with LSEG consensus:Earnings per share: 49 cents adjusted vs. 49 cents expectedRevenue: $7.8 ...