Hewlett Packard Reports Better-Than-Expected Q3 Results: Details

Hewlett Packard Enterprise Co HPE reported its third-quarter financial results after Wednesday's closing bell. Here's a look at the details from the report. 

The Details: Hewlett Packard reported quarterly earnings of 50 cents per share, which beat the analyst consensus estimate by 6.38%. Quarterly sales came in at $7.71 billion, which beat the analyst consensus estimate of $7.66 billion and is a 10.11% increase over the same period last year.

• Server revenue was $4.3 billion, up 35% from the prior-year period in actual dollars and in constant currency, with 10.8% operating profit margin, compared to 10.1% from the prior-year period.
• Intelligent Edge revenue was $1.1 billion, down 23% from the prior-year period in actual dollars and in constant currency, with 22.4% operating profit margin, compared to 27.6% in the prior-year period.
• Hybrid Cloud revenue was $1.3 billion, down 7% from the prior-year period in actual dollars and in constant currency, with 5.1% operating profit margin, compared to 5.4% from the prior-year period.
• Financial Services revenue was $879 million, up 1% from the prior-year period in actual dollars and in constant currency, with 9% operating profit margin, compared to 8.2% from the prior-year period. Net portfolio assets of $13.2 billion, down 2.7% from the prior-year period in actual dollars and down 0.6% in constant currency. The business delivered return on equity of 17.4%, up 1.7 points from the prior-year period.

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“We delivered a strong third quarter, with impressive revenue growth, especially from our AI system conversion, and we improved profitability,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise.

“These results reflect our momentum in delivering on our edge-to-cloud strategy across networking, hybrid cloud, and AI. We have driven meaningful innovation throughout our portfolio, which increases our relevancy with customers and positions us to continue to deliver profitable growth for shareholders.

The HPE board of directors declared a regular cash dividend of 13 cents per share on the company’s common stock, payable on Oct.18, 2024, to stockholders of record as of the close of business on Sept. 19, 2024.

Outlook: Hewlett Packard sees fourth-quarter earnings of between 52 cents and 57 cents per share, versus the 55-cent estimate, and revenue in a range of $8.1 billion to $8.4 billion, versus the $8.17 billion estimate. The company expects fiscal year earnings of between $1.92 and $1.97 per share, versus the $1.92 estimate, and revenue growth of between 1% and 3%.

HPE Price Action: According to Benzinga Pro, Hewlett Packard shares are down 3.73% after-hours at $18.07 at the time of publication Wednesday.

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