Revenue Performance - Q4 revenue reached $8.5 billion, a 15% increase from the prior-year period[4] - Annualized revenue run-rate (ARR) was $1.9 billion, up 49% year-over-year[4] - Net revenue for the three months ended October 31, 2024, was $8,458 million, a 9.6% increase from $7,710 million in the previous quarter[19] - For the year ended October 31, 2024, net revenue was $30,127 million, a 3.4% increase from $29,135 million in the previous year[21] - Total consolidated net revenue for the year ended October 31, 2024, reached $30,127 million, compared to $29,135 million in the prior year, reflecting an increase of 3.4%[35] - Total consolidated net revenue for the three months ended October 31, 2024, was $8,458 million, a 10% increase from $7,710 million in the previous quarter and a 15% increase year-over-year from $7,351 million[37] Earnings and Profitability - GAAP diluted net EPS was $0.99, up 102% from the prior-year period, exceeding guidance[5] - Net earnings attributable to common stockholders for the quarter were $1,341 million, compared to $512 million in the previous quarter, representing a significant increase of 161.4%[19] - Basic earnings per share for the quarter were $1.02, up from $0.39 in the previous quarter, indicating a 161.5% increase[19] - Net earnings attributable to Hewlett Packard Enterprise (HPE) for the year ended October 31, 2024, increased to $2,579 million, up from $2,025 million in the previous year, representing a growth of 27.3%[31] - GAAP net earnings attributable to HPE for the three months ended October 31, 2024, were $1,366 million, compared to $642 million for the same period in 2023, representing a 113% increase[27] - Non-GAAP net earnings attributable to common stockholders for the three months ended October 31, 2024, were $770 million, up from $680 million in the same period last year, reflecting a 13.24% increase[27] Cash Flow and Dividends - Free cash flow (FCF) was $1.5 billion, a decrease of $821 million from the prior-year period[5] - Free cash flow for the three months ended October 31, 2024, was $1,500 million, compared to $669 million for the previous quarter, indicating a significant increase[29] - Cash dividends declared per share for the quarter were $0.52, compared to $0.48 in the previous year[21] - The Board declared a cash dividend of $0.13 per share, payable on January 16, 2025[7] Segment Performance - Server revenue was $4.7 billion, up 32% year-over-year, with an operating profit margin of 11.6%[6] - Hybrid Cloud revenue was $1.6 billion, up 18% year-over-year, with a 7.7% operating profit margin[6] - Intelligent Edge revenue was $1.1 billion, down 20% year-over-year, with a 24.4% operating profit margin[6] - The Server segment generated $16,205 million in revenue for the year ended October 31, 2024, compared to $14,361 million in the previous year, marking a growth of 12.9%[35] - The Hybrid Cloud segment reported revenue of $5,386 million for the year ended October 31, 2024, slightly down from $5,493 million, indicating a decrease of 2.0%[35] - The Intelligent Edge segment reported revenue of $4,532 million for the year ended October 31, 2024, down from $5,379 million, reflecting a decrease of 15.7%[35] Assets and Liabilities - Total current assets as of October 31, 2024, were $33,457 million, up from $18,948 million as of October 31, 2023, showing an increase of 76.73%[30] - Total assets increased to $71,262 million as of October 31, 2024, from $57,153 million a year earlier, marking a growth of 24.7%[30] - Long-term debt as of October 31, 2024, was $13,504 million, compared to $7,487 million as of October 31, 2023, reflecting an increase of 80.5%[30] - Cash and cash equivalents increased to $14,846 million as of October 31, 2024, from $4,270 million a year earlier, representing a growth of 248.5%[30] Strategic Initiatives and Future Outlook - HPE expects revenue growth in the mid-teens percentage for Q1 FY 2025[8] - The acquisition of Juniper Networks is expected to close in early 2025, pending regulatory review[9] - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[28] - Transformation costs related to the HPE Next Plan and Cost Optimization and Prioritization Plan are expected to decline significantly beyond fiscal 2024[50] Non-GAAP Measures and Financial Adjustments - Hewlett Packard Enterprise's non-GAAP net earnings for the quarter were significantly impacted by charges related to stock-based compensation, disaster recovery, and divestiture-related exit costs[48] - The company reported a projected non-GAAP income tax rate of 15% for fiscal 2024, up from 14% in fiscal 2023, reflecting changes in its tax structure and geographic earnings mix[51] - Non-GAAP gross profit margin excludes stock-based compensation and other specific charges, providing a clearer view of operational performance[49] - Non-GAAP operating profit margin excludes amortization of intangible assets and other specific charges, reflecting ongoing operational results more accurately[49] - The company emphasizes the importance of non-GAAP measures for providing transparency and facilitating comparisons with industry peers[47]

Core Viewpoint - Hewlett Packard Enterprise (HPE) has shown a solid total return of 25% in 2024, driven by its focus on enterprise data and IT infrastructure solutions, particularly in the growing AI market [3]. Financial Performance - HPE's total revenues have stagnated over the past two years, with Q3 2024 revenues slightly down from Q1 2023 [5]. - The server business has experienced significant growth, with revenue growth of 18% in Q2 and 35% in Q3 [5]. - AI-related products and services generated $1.3 billion in revenue in Q3, over three times the amount from Q1, with a strong AI systems backlog of $3.4 billion [6]. Product and Service Development - HPE GreenLake, a hybrid cloud solution, has seen a 37% increase in customer adoption since Q3 2023 [8]. - The platform allows customers to choose services, shifting from a hardware sales model to a "pay-as-you-go" model, with 71% of its annualized revenue now coming from software and services [9]. - The introduction of HPE Private Cloud AI, co-developed with NVIDIA, is generating strong interest for developing generative AI applications [11]. Strategic Moves - HPE's acquisition of Juniper Networks aims to enhance networking infrastructure for AI workloads and hybrid cloud performance, potentially boosting competitive edge [12]. - Concerns exist regarding a possible challenge from the Department of Justice (DOJ) that could delay the acquisition, which could impact market sentiment [13]. Analyst Sentiment - Analysts at Raymond James have a Strong Buy rating on HPE with a price target of $29, indicating a potential 40% upside from the current price [4]. - Despite a current "Hold" rating among analysts, there is optimism regarding HPE's future performance if strategic moves, such as the Juniper acquisition, proceed successfully [16].

Wall Street analysts forecast that Hewlett Packard Enterprise (HPE) will report quarterly earnings of $0.55 per share in its upcoming release, pointing to a year-over-year increase of 5.8%. It is anticipated that revenues will amount to $8.23 billion, exhibiting an increase of 12% compared to the year-ago quarter. The current level reflects a downward revision of 1.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively ...

Key TakeawaysHewlett Packard Enterprise (HPE) will report earnings results after the market closes Thursday.The majority of analysts who research HPE and are tracked by Visible Alpha have a "hold" rating for the company.Bank of America raised its price target for HPE based in part on optimism for the overall artificial intelligence server market. Hewlett Packard Enterprise (HPE) will report fiscal fourth-quarter earnings after the market closes Thursday, with analysts softly bullish overall ahead of the com ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Hewlett Packard Enterprise (HPE) driven by higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The earnings report is expected on December 5, 2024, with a consensus EPS estimate of $0.55, reflecting a +5.8% change year-over-year [3][4]. - Revenues are projected to reach $8.23 billion, marking a 12% increase from the previous year [4]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.41% over the last 30 days, indicating a reassessment by analysts [5]. - The Most Accurate Estimate for HPE is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.51% [11][12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. - HPE currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [13]. Historical Performance - HPE has consistently beaten consensus EPS estimates, achieving this in the last four quarters [15]. - In the last reported quarter, HPE exceeded expectations by delivering earnings of $0.50 per share against an expected $0.46, resulting in a surprise of +8.70% [14]. Conclusion - HPE is positioned as a compelling candidate for an earnings beat, but other factors should also be considered before making investment decisions [18].

Earnings Report and Guidance - Hewlett Packard Enterprise (HPE) will report FY24 earnings on November 26, 2024, with guidance indicating 1-3% top-line growth and diluted EPS in the range of $1.68-$1.73 [1] - Consensus estimates project $29,930 million in revenue and a diluted EPS of $1.96 per share [1] Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience and a decade in professional services across various sectors including O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1] - The analyst employs a macro-value-oriented approach to investment analysis, leveraging cross-industry insights for investment recommendations [1]

The technology sector has been a bright spot in the third quarter of 2024, fueled by advancements in artificial intelligence (AI), machine learning and generative AI (GenAI). This transformative growth is underpinned by strong industry tailwinds, such as widespread digitalization and increased enterprise adoption of cutting-edge technologies.Factors Supporting Tech Sector’s GrowthThe relentless pace of digital transformation continues to boost technology companies. The rapid adoption of cloud computing, 5G ...

Hewlett Packard Enterprise (HPE) shares have gained 21.6% in the past six months, outperforming the Zacks Computer and Technology Sector and the S&P 500 index’s return of 11.7 and 12.7, respectively. HPE also outperformed the Zacks Computer - Integrated Systems industry's decline of 2.3% in the past six months. HPE’s outperformance reflects investors’ confidence in the company’s innovative portfolio, which is demonstrating significant growth in the high-performance computing (HPC) and artificial intelligenc ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Hewlett Packard Enterprise (HPE) . This company, which is in the Zacks Computer - Integrated Systems industry, shows potential for another earnings beat.This information technology products and services provider has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The avera ...

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