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 ...

特朗普的关税政策，有点混乱！ 在当地时间周五播出的一档采访节目中，美国总统特朗普表示，对墨西哥和加拿大的关税可能会高于本周早些 时候征收的25%的税率，这给贸易政策带来了进一步的不确定性。特朗普还表示，关税将从4月2日起全部对等 实施。 一天之前，即当地时间周四，特朗普宣布，对墨西哥、加拿大两国加征的25%关税措施将暂缓执行直至4月2 日。同一天，特朗普称，"印度是一个关税非常高的国家。"有外媒指出，鉴于与美国相比印度征收的关税较 高，预计印度将受到对等关税的沉重打击。 值得关注的是，特朗普时断时续的关税策略，扰乱了资本市场。周四，即使暂缓对墨加商品征税后，美国股市 仍未能反弹，标普500指数收盘大跌1.78%，纳指跌2.61%，大型科技股纷纷下挫；周五，欧洲股市也纷纷调 整，截至21点，德国DAX30跌幅超过1.7%，法国CAC40指数跌超1%。 另外，特朗普的关税大棒还导致一家公司的股价暴跌。周五美股盘前，慧与科技（HPE）股价大跌20%，这 家AI服务器制造商表示，在竞争激烈的市场中，其年度利润预测将受到美国关税的打击。 特朗普又有新动态 特朗普表示，对墨西哥和加拿大的关税可能会高于本周早些时候征收的2 ...

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 ...

Core Insights - Hewlett Packard Enterprise (HPE) reported a 16% year-over-year revenue increase to $7.9 billion for Q1 fiscal 2025, exceeding analyst estimates [2][3] - Non-GAAP earnings per share (EPS) were $0.49, slightly below the projected $0.50, indicating operational challenges despite revenue growth [2][3] - The company faced significant cash flow pressures, with free cash flow dropping to -$877 million, and gross margins decreased by 6.8 percentage points [3][8] Financial Performance - Total revenue for Q1 2025 reached $7.9 billion, up from $6.8 billion in Q1 2024, reflecting a 16% increase [3][6] - Server segment revenue increased by 29% to $4.3 billion, although operating margins fell from 11.4% to 8.1% [6] - The hybrid cloud segment grew by 10% in revenue, with operating margins improving from 4% to 7% [7] - The financial services segment showed incremental revenue growth and an increase in operating margins to 9.4% [7] - The Intelligent Edge division experienced a 5% revenue decline [7] Strategic Focus - HPE specializes in edge-to-cloud solutions, with a focus on the HPE GreenLake platform for enterprise IT transformation [4] - The company is investing in AI and supercomputing advancements, alongside strategic acquisitions like Juniper Networks to enhance its competitive edge [5] Future Outlook - Management projects fiscal year revenue growth between 7% and 11%, focusing on enhancing HPE GreenLake capabilities and leveraging AI infrastructure [9] - Potential margin pressures from AI advancements and the impact of the Juniper Networks acquisition present strategic risks [9][10]

Core Viewpoint - Hewlett Packard Enterprise (HPE) shares fell 16% in extended trading after the company provided quarterly and full-year guidance that was below consensus expectations [1][3]. Financial Performance - HPE's revenue increased by 16% year over year for the fiscal first quarter, reaching $7.85 billion, compared to $7.82 billion expected by analysts [1][5]. - The company reported a profit of $598 million, or 44 cents per share, up from $387 million, or 29 cents per share, in the same quarter a year earlier [1]. Future Guidance - For the fiscal second quarter, HPE projected adjusted earnings per share between 28 cents and 34 cents, with revenue expected to be between $7.2 billion and $7.6 billion, significantly lower than the analyst consensus of 50 cents per share on $7.93 billion in revenue [3]. - For the 2025 fiscal year, HPE forecasted adjusted earnings per share of $1.70 to $1.90, while analysts had predicted $2.13 per share [4]. Cost Reduction Measures - HPE announced a cost reduction program that will involve layoffs, aiming for $350 million in gross savings by the 2027 fiscal year, affecting approximately 2,500 employees [2]. Legal Challenges - The U.S. Justice Department filed a lawsuit to block HPE's proposed $14 billion acquisition of Juniper Networks, with a trial expected to begin in July [3].

HPE Q1 FY25 Earnings |1 March 6th, 2025 Forward-looking statements Hewlett Packard Enterprise HPE provides certain forward-looking quidance on a nor-GAPP basis only. Hewlet Packard Enterprise is unable to provide a reconcliation to the most dinectly comparable GAAP unreasonable efforts, as the Company cannot predict some elements that are included in such directly comparable GARP financid measure. These elements could have a material reported GAAP results for the quidance period. Refer to the discussion of ...

Revenue Performance - Revenue for Q1 Fiscal 2025 was $7.9 billion, representing a 16% increase year-over-year in actual dollars and a 17% increase in constant currency [3]. - Annualized revenue run-rate (ARR) reached $2.1 billion, up 45% from the prior-year period in actual dollars and 46% in constant currency [3]. - Net revenue for the three months ended January 31, 2025, was $7,854 million, a decrease of 7.1% from $8,458 million in the previous quarter and an increase of 16.2% from $6,755 million in the same quarter last year [19]. - Total consolidated net revenue for the three months ended January 31, 2025, was $7,854 million, a decrease of 7% quarter-over-quarter and an increase of 16% year-over-year [31]. - The Server segment reported net revenue of $4,290 million, down 8% from the previous quarter but up 29% year-over-year [31]. - Intelligent Edge revenue was $1.1 billion, down 5% year-over-year in actual dollars, with an operating profit margin of 27.4% [7]. - Hybrid Cloud revenue was $1.4 billion, up 10% year-over-year in actual dollars, with an operating profit margin of 7.0% [7]. Earnings and Profitability - GAAP diluted net EPS was $0.44, up 52% from the prior-year period, exceeding the guidance range of $0.31 to $0.36 [7]. - Non-GAAP diluted net EPS was $0.49, up 2% from the prior-year period, within the guidance range of $0.47 to $0.52 [7]. - Earnings from operations for the same period were $433 million, down 37.5% from $693 million in the previous quarter and down 17.5% from $525 million year-over-year [19]. - Net earnings attributable to common stockholders were $598 million, a decrease of 55.5% from $1,341 million in the previous quarter and an increase of 54.3% from $387 million year-over-year [19]. - GAAP gross profit margin for the three months ended January 31, 2025, was 29.2%, down from 30.8% in the previous quarter and down from 36.4% year-over-year [21]. - Non-GAAP net earnings attributable to HPE for the three months ended January 31, 2025, were $684 million, compared to $795 million in the previous quarter and $638 million in the same quarter last year [23]. - The total segment operating profit margin decreased to 10.6% for the three months ended January 31, 2025, down from 11.9% in the previous quarter and 12.3% year-over-year [33]. Cash Flow and Expenses - Free cash flow for the three months ended January 31, 2025, was $(877) million, a significant decrease from $1,500 million in the previous quarter and $(482) million year-over-year [23]. - Research and development expenses for the quarter were $475 million, down from $527 million in the previous quarter and down from $582 million year-over-year [19]. - The total costs and expenses for the three months ended January 31, 2025, were $7,421 million, a decrease of 4.4% from $7,765 million in the previous quarter and an increase of 19.1% from $6,230 million year-over-year [19]. - The company reported a net cash used in operating activities of $390 million for the three months ended January 31, 2025, compared to a net cash provided of $64 million for the same period last year [27]. Future Projections and Guidance - HPE estimates Q2 Fiscal 2025 revenue to be in the range of $7.2 billion to $7.6 billion, with GAAP diluted net EPS estimated between $0.08 and $0.14 [6]. - HPE expects future annualized cost savings of approximately $120 million following the divestiture of 30% of H3C's total issued share capital, which generated $2.1 billion in pre-tax proceeds [43]. - HPE announced a cost reduction program expected to deliver gross savings of approximately $350 million by fiscal year 2027 [9]. Legal and Organizational Changes - The proposed merger with Juniper Networks is facing legal challenges, with a trial set to commence on July 9, 2025 [8]. - HPE implemented an organizational change effective at the beginning of fiscal 2025, transferring certain managed services to align with its current business structure [37]. Financial Reporting and Non-GAAP Measures - The company provides non-GAAP financial measures to enhance transparency and allow investors to evaluate its operating performance without the impact of foreign exchange rates [41]. - HPE's management believes that excluding certain costs from non-GAAP measures provides a clearer view of ongoing operating results [42]. - HPE excludes gains and losses on non-marketable equity investments to reflect normal business operations, impacting the evaluation of current operating performance [46]. - For fiscal 2025, HPE projects a non-GAAP income tax rate of 15%, consistent with the rate used in fiscal 2024 [46]. - HPE's Free Cash Flow (FCF) is defined as cash flow from operations minus net capital expenditures, adjusted for exchange rate fluctuations [46]. - The projected non-GAAP income tax rate may change due to the evolving global tax environment and changes in the Company's geographic earnings mix [46]. - HPE's management and investors utilize FCF to assess cash available for investments, stock repurchases, and liquidity evaluation [46].