Hewlett Packard Enterprise Q1 EPS Beats at $0.65, Revenue Misses $9.30B, Raises FY Outlook
Hewlett Packard Enterprise posted Q1 adjusted EPS of $0.65 beating forecasts by $0.10, while revenue fell short at $9.30B vs $9.33B. The company raised its fiscal-year EPS guidance to $2.30-$2.50 (from $2.25-$2.45) and affirmed revenue guidance of $40.12B-$41.84B.
1. Q1 Earnings and Revenue
Hewlett Packard Enterprise reported adjusted EPS of $0.65 in the first quarter, $0.10 above estimates, while revenue reached $9.30 billion, slightly below the $9.33 billion forecast.
2. Segment Revenue Breakdown
Networking revenue surged 151.5% to $2.7 billion year over year, offset by a 2.7% decline in Cloud & AI revenue to $6.3 billion and a 2.2% drop in Corporate Investments and Other to $261 million.
3. Cash Flow and Shareholder Returns
Operating cash flow totaled $1.2 billion, with free cash flow of $700 million, and the company returned $348 million to shareholders through dividends and share repurchases, declaring a 14.25-cent quarterly dividend.
4. Guidance Update
Hewlett Packard Enterprise projects Q2 adjusted EPS of $0.51-$0.55 and revenue of $9.60 billion to $10.00 billion, and upped its fiscal-year EPS outlook to $2.30-$2.50 while confirming revenue guidance of $40.12 billion to $41.84 billion.