Accelerating AI demand drives HPE revenue growth; profit
increases
Hewlett Packard Enterprise (NYSE: HPE) today announced financial
results for the third quarter ended July 31, 2024.
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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.”
“In the third quarter, we executed well in a competitive macro
environment to deliver strong revenue and EPS above the high end of
our guidance,” said Marie Myers, executive vice president and CFO
of Hewlett Packard Enterprise. “We are well positioned to capture
share of the growing AI infrastructure market and expect to see the
continuing benefit of our cost management efforts. We are confident
in finishing the year strong and are raising EPS guidance as a
result.”
Third Quarter Fiscal 2024 Financial Results
- Revenue: $7.7 billion, up 10% from the prior-year period
in actual dollars and in constant currency(1)
- Annualized revenue run-rate (“ARR”)(2): $1.7 billion, up
35% from the prior-year period in actual dollars and 39% in
constant currency(1)
- Gross margins:
- GAAP of 31.6%, down 420 basis points from the prior-year period
and down 140 basis points sequentially
- Non-GAAP(1) of 31.8%, down 410 basis points from the prior-year
period and down 130 basis points sequentially
- Diluted net earnings per share (“EPS”):
- GAAP of $0.38, up 9% from the prior-year period and up 58%
sequentially, above our guidance range of $0.29 to $0.34
- Non-GAAP(1) of $0.50, up 2% from the prior-year period and up
19% sequentially, above our guidance range of $0.43 to $0.48
- Cash flow from operations: $1,154 million, a decrease of
$371 million from the prior-year period
- Free cash flow (“FCF”)(1)(3): $669 million, a decrease
of $286 million from the prior-year period
- Capital returns to shareholders: $221 million in the
form of dividends and share repurchases
Third Quarter Fiscal 2024 Segment Results
- Server revenue was $4.3 billion, up 35% from the prior-year
period in actual dollars and in constant currency(1), 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(1),
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(1),
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(1),
with 9.0% 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(1). The business delivered return on equity of
17.4%, up 1.7 points from the prior-year period.
Dividend
The HPE Board of Directors declared a regular cash dividend of
$0.13 per share on the company’s common stock, payable on October
18, 2024, to stockholders of record as of the close of business on
September 19, 2024.
Fiscal 2024 Fourth Quarter Outlook
HPE estimates revenue to be in the range of $8.1 billion to $8.4
billion. HPE estimates GAAP diluted net EPS to be in the range of
$0.76 to $0.81 and non-GAAP diluted net EPS(1) to be in the range
of $0.52 to $0.57. Fiscal 2024 fourth quarter non-GAAP diluted net
EPS excludes net after-tax gain of approximately $0.24 per diluted
share primarily related to H3C income, and adjustments related to
the sale of H3C, offset by acquisition, disposition and other
related charges, stock-based compensation expense, amortization of
intangible assets, and transformation costs.
Fiscal 2024 Outlook
HPE estimates fiscal 2024 revenue growth of 1% to 3%, in
constant currency(1)(5), and fiscal 2024 GAAP operating profit
growth to be in the range of 2% to 6% and non-GAAP operating
profit(1)(4) growth to be flat to 2%. HPE estimates GAAP diluted
net EPS to be in the range of $1.68 and $1.73 and non-GAAP diluted
net EPS(1) to be in the range of $1.92 and $1.97. Fiscal 2024
non-GAAP diluted net EPS estimates exclude net after-tax
adjustments of approximately $0.24 per diluted share, primarily
related to stock-based compensation expense, acquisition,
disposition and other related charges, amortization of intangible
assets, and transformation costs, offset by H3C income, and
adjustments related to the sale of H3C. HPE estimates free cash
flow(1)(3)(5) of $1.9 billion.
H3C Technologies Co., Limited Update
HPE also notes that on September 4, 2024, the company received
proceeds of approximately $2.1 billion from the partial sale of its
equity position in H3C Technologies Co., Limited (representing 30%
of all H3C shares) from Unisplendour International Technology
Limited. The financial impact of this transaction will be reflected
in HPE’s Q4 FY24 and full year FY24 earnings announcement later
this year.
1 A description of HPE’s use of non-GAAP financial information
is provided below under “Use of non-GAAP financial information and
key performance metrics.”
2 Annualized Revenue Run-Rate (“ARR”) is a financial metric used
to assess the growth of the Consumption Services offerings. ARR
represents the annualized revenue of all net HPE GreenLake
edge-to-cloud platform services revenue, related financial services
revenue (which includes rental income from operating leases and
interest income from finance leases), and software-as-a-Service,
software consumption revenue, and other as-a-Service offerings,
recognized during a quarter and multiplied by four. We use ARR as a
performance metric. ARR should be viewed independently of net
revenue and is not intended to be combined with it.
3 Free cash flow represents cash flow from operations, less net
capital expenditures (investments in property, plant &
equipment (“PP&E”) and software assets less proceeds from the
sale of PP&E), and adjusted for the effect of exchange rate
fluctuations on cash, cash equivalents, and restricted cash.
4 FY24 non-GAAP operating profit excludes costs of approximately
$1.0 billion primarily related to stock-based compensation expense,
acquisition, disposition and other related charges, amortization of
intangible assets, and transformation costs, offset by H3C income,
and adjustments related to the sale of H3C.
5 Hewlett Packard Enterprise provides certain guidance on a
non-GAAP basis. In reliance on the exception provided by Item
10(e)(1)(i)(B) of Regulation S-K, Hewlett Packard Enterprise is
unable to provide a reconciliation to the most directly comparable
GAAP financial measure without unreasonable efforts, as the Company
cannot predict some elements that are included in such directly
comparable GAAP financial measure. These elements could have a
material impact on the Company’s reported GAAP results for the
guidance period. Refer to the discussion of non-GAAP financial
measures below for more information.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise (NYSE: HPE) is the global
edge-to-cloud company that helps organizations accelerate outcomes
by unlocking value from all of their data, everywhere. Built on
decades of reimagining the future and innovating to advance the way
people live and work, HPE delivers unique, open and intelligent
technology solutions as a service. With offerings spanning Cloud
Services, Server, Intelligent Edge, Software, and Hybrid Cloud, HPE
provides a consistent experience across all clouds and edges,
helping customers develop new business models, engage in new ways,
and increase operational performance. For more information, visit:
www.hpe.com.
Use of non-GAAP financial information and key performance
metrics
To supplement Hewlett Packard Enterprise’s condensed
consolidated financial statement information presented on a
generally accepted accounting principles (“GAAP”) basis, Hewlett
Packard Enterprise provides financial measures, including revenue
on a constant currency basis (including at the business segment
level), non-GAAP gross profit, non-GAAP gross profit margin,
non-GAAP operating profit (non-GAAP earnings from operations),
non-GAAP operating profit margin (non-GAAP earnings from operations
as a percentage of net revenue), non-GAAP income tax rate, non-GAAP
net earnings, non-GAAP diluted net earnings per share and free cash
flow (“FCF”). Hewlett Packard Enterprise also provides forecasts of
revenue growth on a constant currency basis, non-GAAP diluted net
earnings per share, non-GAAP operating profit growth, and FCF.
Reconciliations of each of these non-GAAP financial measures to
their most directly comparable GAAP measures for this quarter and
prior periods are included in the tables below or elsewhere in the
materials accompanying this news release. In addition an
explanation of the ways in which Hewlett Packard Enterprise’s
management uses these non-GAAP measures to evaluate its business,
the substance behind Hewlett Packard Enterprise’s decision to use
these non-GAAP measures, the material limitations associated with
the use of these non-GAAP measures, the manner in which Hewlett
Packard Enterprise’s management compensates for those limitations,
and the substantive reasons why Hewlett Packard Enterprise’s
management believes that these non-GAAP measures provide
supplemental useful information to investors is included further
below. This additional non-GAAP financial information is not meant
to be considered in isolation or as a substitute for revenue, gross
profit, gross profit margin, operating profit (earnings from
operations), operating profit margin (earnings from operations as a
percentage of net revenue), net earnings, diluted net earnings per
share, and cash flow from operations prepared in accordance with
GAAP.
In addition to the supplemental non-GAAP financial information,
Hewlett Packard Enterprise also presents annualized revenue
run-rate (“ARR”) as performance metric. ARR is a financial metric
used to assess the growth of the Consumption Services offerings.
ARR represents the annualized revenue of all net HPE GreenLake
edge-to-cloud platform services revenue, related financial services
revenue (which includes rental income for operating leases and
interest income from finance leases), and software-as-a-service
(“SaaS”), software consumption revenue, and other as-a-service
offerings, recognized during a quarter and multiplied by four. ARR
should be viewed independently of net revenue and deferred revenue
and are not intended to be combined with any of these items.
Forward-looking statements
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks,
uncertainties, and assumptions. If the risks or uncertainties ever
materialize or the assumptions prove incorrect, the results of
Hewlett Packard Enterprise Company and its consolidated
subsidiaries ("Hewlett Packard Enterprise") may differ materially
from those expressed or implied by such forward-looking statements
and assumptions. The words "believe", "expect", "anticipate",
"optimistic", "intend", "guide", "will", "estimate", "may",
"could", “aim”, "should", and similar expressions are intended to
identify such forward-looking statements. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements, including but not limited to any
anticipated financial or operational benefits associated with the
segment realignment that became effective as of the beginning of
the first quarter of fiscal 2024; any projections, estimations, or
expectations of addressable markets and their sizes, revenue
(including annualized revenue run rate), margins, expenses
(including stock-based compensation expenses), investments,
effective tax rates, interest rates, investments, net earnings, net
earnings per share, cash flows, liquidity and capital resources,
inventory, order backlog, share repurchases, dividends, currency
exchange rates, repayments of debts, amortization of intangible
assets, or other financial items; any projections or estimations of
future orders, including as-a-service orders; any statements of the
plans, strategies, and objectives of management for future
operations, as well as the execution and consummation of corporate
transactions or contemplated acquisitions (including but not
limited to our proposed acquisition of Juniper Networks, Inc.) and
dispositions (including but not limited to the disposition of our
H3C shares and the receipt of proceeds therefrom), research and
development expenditures, and any resulting benefit, cost savings,
charges, or revenue or profitability improvements; any statements
concerning the expected development, performance, market share, or
competitive performance relating to products or services; any
statements concerning technological and market trends, the pace of
technological innovation, and adoption of new technologies,
including artificial intelligence-related and other products and
services offered by Hewlett Packard Enterprise; any statements
regarding current or future macroeconomic trends or events and the
impact of those trends and events on Hewlett Packard Enterprise and
our financial performance, including but not limited to supply
chain, demand for our products and services, and access to
liquidity, and our actions to mitigate such impacts on our
business; any statements concerning the relationship between China
and the U.S., and our actions in response thereto; any statements
of expectation or belief, including those relating to future
guidance and the financial performance of Hewlett Packard
Enterprise; and any statements of assumptions underlying any of the
foregoing.
Risks, uncertainties and assumptions include the need to address
the many challenges facing Hewlett Packard Enterprise's businesses;
the competitive pressures faced by Hewlett Packard Enterprise's
businesses; risks associated with executing Hewlett Packard
Enterprise's strategy; the impact of macroeconomic and geopolitical
trends and events, including but not limited to supply chain
constraints, the use and development of artificial intelligence,
the inflationary environment, the ongoing conflicts between Russia
and Ukraine and in the Middle East, and the relationship between
China and the U.S.; the need to effectively manage third-party
suppliers and distribute Hewlett Packard Enterprise's products and
services; the protection of Hewlett Packard Enterprise's
intellectual property assets, including intellectual property
licensed from third parties and intellectual property shared with
its former parent; risks associated with Hewlett Packard
Enterprise's international operations (including public health
crises, such as pandemics or epidemics, and geopolitical events,
such as, but not limited to, those mentioned above); the
development of and transition to new products and services and the
enhancement of existing products and services to meet customer
needs and respond to emerging technological trends; the execution
of Hewlett Packard Enterprise’s transformation and mix shift of its
portfolio of offerings; the execution and performance of contracts
by Hewlett Packard Enterprise and its suppliers, customers,
clients, and partners, including any impact thereon resulting from
macroeconomic or geopolitical events, such as, but not limited to,
those mentioned above; the prospect of a shutdown of the U.S.
federal government; the hiring and retention of key employees; the
execution, integration, consummation, and other risks associated
with business combination, disposition, and investment
transactions, including but not limited to the risks associated
with the disposition of H3C shares and the receipt of proceeds
therefrom and completion of our proposed acquisition of Juniper
Networks, Inc. and our ability to integrate and implement our
plans, forecasts, and other expectations with respect to the
consolidated business; the impact of changes to privacy,
cybersecurity, environmental, global trade, and other governmental
regulations; changes in our product, lease, intellectual property,
or real estate portfolio; the payment or non-payment of a dividend
for any period; the efficacy of using non-GAAP, rather than GAAP,
financial measures in business projections and planning; the
judgments required in connection with determining revenue
recognition; impact of company policies and related compliance;
utility of segment realignments; allowances for recovery of
receivables and warranty obligations; provisions for, and
resolution of, pending investigations, claims, and disputes; the
impacts of tax law changes and related guidance or regulations; and
other risks that are described herein, including but not limited to
the risks described in Hewlett Packard Enterprise’s Annual Report
on Form 10-K for the fiscal year ended October 31, 2023, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, and in other
filings made by Hewlett Packard Enterprise from time to time with
the Securities and Exchange Commission.
As in prior periods, the financial information set forth in this
press release, including tax-related items, reflects estimates
based on information available at this time. While Hewlett Packard
Enterprise believes these estimates to be reasonable, these amounts
could differ materially from reported amounts in the filings made
by Hewlett Packard Enterprise from time to time with the Securities
and Exchange Commission. Hewlett Packard Enterprise assumes no
obligation and does not intend to update these forward-looking
statements, except as required by applicable law.
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Condensed Consolidated
Statements of Earnings
(Unaudited)
For the three months
ended
July 31, 2024
April 30, 2024
July 31, 2023
In millions, except per share
amounts
Net revenue
$
7,710
$
7,204
$
7,002
Costs and Expenses:
Cost of sales
5,271
4,828
4,492
Research and development
547
590
578
Selling, general and administrative
1,229
1,215
1,302
Amortization of intangible assets
60
67
72
Transformation costs
14
33
65
Disaster charges
5
—
1
Acquisition, disposition and other related
charges
37
46
21
Total costs and expenses
7,163
6,779
6,531
Earnings from operations
547
425
471
Interest and other, net(1)
(12
)
(22
)
(8
)
Earnings from equity interests
73
42
73
Earnings before provision for taxes
608
445
536
Provision for taxes
(96
)
(131
)
(72
)
Net earnings
$
512
$
314
$
464
Net Earnings Per Share:
Basic
$
0.39
$
0.24
$
0.36
Diluted
$
0.38
$
0.24
$
0.35
Cash dividends declared per share
$
0.13
$
0.13
$
0.12
Weighted-average Shares Used to Compute
Net Earnings Per Share:
Basic
1,312
1,311
1,299
Diluted
1,332
1,325
1,316
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Condensed Consolidated
Statements of Earnings
(Unaudited)
For the nine months
ended
July 31, 2024
July 31, 2023
In millions, except per share
amounts
Net revenue
$
21,669
$
21,784
Costs and Expenses:
Cost of sales
14,397
14,104
Research and development
1,719
1,771
Selling, general and administrative
3,660
3,828
Amortization of intangible assets
198
216
Transformation costs
67
227
Disaster charges
5
5
Acquisition, disposition and other related
charges
126
51
Total costs and expenses
20,172
20,202
Earnings from operations
1,497
1,582
Interest and other, net(1)
(122
)
(81
)
Earnings from equity interests
161
180
Earnings before provision for taxes
1,536
1,681
Provision for taxes
(323
)
(298
)
Net earnings
$
1,213
$
1,383
Net Earnings Per Share:
Basic
$
0.93
$
1.06
Diluted
$
0.92
$
1.05
Cash dividends declared per share
$
0.39
$
0.36
Weighted-average Shares Used to Compute
Net Earnings Per Share:
Basic
1,308
1,300
Diluted
1,325
1,317
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP measures
(Unaudited)
For the three months
ended
July 31, 2024
April 30, 2024
July 31, 2023
Dollars in millions
GAAP net revenue
$
7,710
$
7,204
$
7,002
GAAP cost of sales
5,271
4,828
4,492
GAAP gross profit
2,439
2,376
2,510
Non-GAAP Adjustments
Stock-based compensation expense
9
14
9
Disaster recovery
(7
)
(7
)
(3
)
Divestiture related exit costs
9
—
—
Non-GAAP gross profit
$
2,450
$
2,383
$
2,516
GAAP gross profit margin
31.6
%
33.0
%
35.8
%
Non-GAAP adjustments
0.2
%
0.1
%
0.1
%
Non-GAAP gross profit margin
31.8
%
33.1
%
35.9
%
For the nine months
ended
July 31, 2024
July 31, 2023
Dollars in millions
GAAP net revenue
$
21,669
$
21,784
GAAP cost of sales
14,397
14,104
GAAP gross profit
$
7,272
$
7,680
Non-GAAP Adjustments
Stock-based compensation expense
39
38
Disaster recovery
(39
)
(3
)
Divestiture related exit costs
9
—
Non-GAAP gross profit
$
7,281
$
7,715
GAAP gross profit margin
33.6
%
35.3
%
Non-GAAP adjustments
—
%
0.1
%
Non-GAAP gross profit margin
33.6
%
35.4
%
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP measures
(Unaudited)
For the three months
ended
July 31, 2024
April 30, 2024
July 31, 2023
Dollars in millions
GAAP earnings from operations
$
547
$
425
$
471
Non-GAAP Adjustments
Amortization of intangible assets
60
67
72
Transformation costs
14
33
65
Disaster recovery
(2
)
(7
)
(2
)
Stock-based compensation expense
80
120
91
Divestiture related exit costs
35
—
—
Acquisition, disposition and other related
charges
37
46
21
Non-GAAP earnings from
operations
$
771
$
684
$
718
GAAP operating profit margin
7.1
%
5.9
%
6.7
%
Non-GAAP adjustments
2.9
%
3.6
%
3.6
%
Non-GAAP operating profit
margin
10.0
%
9.5
%
10.3
%
For the nine months
ended
July 31, 2024
July 31, 2023
Dollars in millions
GAAP earnings from operations
$
1,497
$
1,582
Non-GAAP Adjustments
Amortization of intangible assets
198
216
Transformation costs
67
227
Disaster (recovery) charges
(34
)
2
Stock-based compensation expense
341
357
Divestiture related exit costs
35
—
Acquisition, disposition and other related
charges
126
51
Non-GAAP earnings from
operations
$
2,230
$
2,435
GAAP operating profit margin
6.9
%
7.3
%
Non-GAAP adjustments
3.4
%
3.9
%
Non-GAAP operating profit
margin
10.3
%
11.2
%
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP measures
(Unaudited)
For the three months
ended
July 31, 2024
Diluted net earnings per
share
April 30, 2024
Diluted net earnings per
share
July 31, 2023
Diluted net earnings per
share
Dollars in millions, except
per share amounts
GAAP net earnings
$
512
$
0.38
$
314
$
0.24
$
464
$
0.35
Non-GAAP Adjustments:
Amortization of intangible assets
60
0.05
67
0.05
72
0.05
Transformation costs
14
0.01
33
0.03
65
0.05
Disaster recovery
(2
)
—
(7
)
(0.01
)
(2
)
—
Stock-based compensation expense
80
0.06
120
0.09
91
0.07
Divestiture related exit costs
35
0.03
—
—
—
—
Acquisition, disposition and other related
charges
37
0.03
46
0.04
21
0.02
Earnings from equity interests
(44
)
(0.04
)
(42
)
(0.03
)
2
—
Gain on equity investments, net
(14
)
(0.01
)
—
—
—
—
Adjustments for taxes
(21
)
(0.01
)
31
0.02
(32
)
(0.02
)
Other adjustments(2)
4
—
(1
)
(0.01
)
(42
)
(0.03
)
Non-GAAP net earnings
$
661
$
0.50
$
561
$
0.42
$
639
$
0.49
For the nine months
ended
July 31, 2024
Diluted net earnings per
share
July 31, 2023
Diluted net earnings per
share
Dollars in millions, except
per share amounts
GAAP net earnings
$
1,213
$
0.92
$
1,383
$
1.05
Non-GAAP Adjustments:
Amortization of intangible assets
198
0.15
216
0.16
Transformation costs
67
0.05
227
0.17
Disaster (recovery) charges
(34
)
(0.03
)
2
—
Stock-based compensation expense
341
0.26
357
0.28
Divestiture related exit costs
35
0.03
—
—
Acquisition, disposition and other related
charges
126
0.10
51
0.04
Earnings from equity interests
(132
)
(0.10
)
16
0.01
Loss on equity investments, net
47
0.03
—
—
Adjustments for taxes
(6
)
(0.01
)
(52
)
(0.04
)
Other adjustments(2)
5
—
(48
)
(0.04
)
Non-GAAP net earnings
$
1,860
$
1.40
$
2,152
$
1.63
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP measures
(Unaudited)
For the three months
ended
July 31, 2024
April 30, 2024
July 31, 2023
In millions
Net cash provided by operating
activities
$
1,154
$
1,093
$
1,525
Investment in property, plant and
equipment and software assets
(543
)
(560
)
(671
)
Proceeds from sale of property, plant and
equipment
62
122
102
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(4
)
(45
)
(1
)
Free cash flow
$
669
$
610
$
955
For the nine months
ended
July 31, 2024
July 31, 2023
In millions
Net cash provided by operating
activities
$
2,311
$
1,585
Investment in property, plant and
equipment and software assets
(1,759
)
(2,153
)
Proceeds from sale of property, plant and
equipment
280
347
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(35
)
138
Free cash flow
$
797
$
(83
)
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance
Sheets
As of
July 31, 2024
October 31, 2023
(Unaudited)
(Audited)
In millions, except par
value
ASSETS
Current Assets:
Cash and cash equivalents
$
3,642
$
4,270
Accounts receivable, net of allowances
3,857
3,481
Financing receivables, net of
allowances
3,705
3,543
Inventory
7,679
4,607
Assets held for sale
6
—
Other current assets
3,516
3,047
Total current assets
22,405
18,948
Property, plant and equipment, net
5,738
5,989
Long-term financing receivables and other
assets
11,926
11,377
Investments in equity interests
2,318
2,197
Goodwill and intangible assets
18,465
18,642
Total assets
$
60,852
$
57,153
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities:
Notes payable and short-term
borrowings
$
3,864
$
4,868
Accounts payable
10,085
7,136
Employee compensation and benefits
1,166
1,724
Taxes on earnings
150
155
Deferred revenue
3,803
3,658
Accrued restructuring
86
180
Liabilities held for sale
59
—
Other accrued liabilities
4,652
4,161
Total current liabilities
23,865
21,882
Long-term debt
7,939
7,487
Other non-current liabilities
6,914
6,546
Stockholders’ Equity
Common stock, $0.01 par value (9,600
shares authorized; 1,298 and 1,283 shares issued and outstanding as
of July 31, 2024 and October 31, 2023, respectively)
13
13
Additional paid-in capital
28,361
28,199
Accumulated deficit
(3,240
)
(3,946
)
Accumulated other comprehensive loss
(3,057
)
(3,084
)
Total HPE stockholders’ equity
22,077
21,182
Non-controlling interests
57
56
Total stockholders’ equity
22,134
21,238
Total liabilities and stockholders’
equity
$
60,852
$
57,153
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
For the nine months
ended
July 31, 2024
July 31, 2023
In millions
Cash Flows from Operating Activities:
Net earnings
$
1,213
$
1,383
Adjustments to Reconcile Net Earnings to
Net Cash Provided by Operating Activities:
Depreciation and amortization
1,924
1,961
Stock-based compensation expense
341
357
Provision for inventory and credit
losses
125
189
Restructuring charges
20
133
Deferred taxes on earnings
16
(2
)
Earnings from equity interests
(161
)
(180
)
Dividends received from equity
investees
43
34
Other, net
160
(7
)
Changes in Operating Assets and
Liabilities, Net of Acquisitions:
Accounts receivable
(383
)
623
Financing receivables
(311
)
(870
)
Inventory
(3,195
)
491
Accounts payable
3,002
(3,146
)
Taxes on earnings
108
26
Restructuring
(144
)
(201
)
Other assets and liabilities
(447
)
794
Net cash provided by operating
activities
2,311
1,585
Cash Flows from Investing Activities:
Investment in property, plant and
equipment and software assets
(1,759
)
(2,153
)
Proceeds from sale of property, plant and
equipment
280
347
Purchases of investments
(16
)
(10
)
Proceeds from maturities and sales of
investments
5
8
Financial collateral posted
(728
)
(1,410
)
Financial collateral received
638
793
Payments made in connection with business
acquisitions, net of cash acquired
—
(761
)
Net cash used in investing activities
(1,580
)
(3,186
)
Cash Flows from Financing Activities:
Short-term borrowings with original
maturities less than 90 days, net
(50
)
(54
)
Proceeds from debt, net of issuance
costs
2,156
3,886
Payment of debt
(2,794
)
(3,062
)
Cash settlement for derivative hedging
debt
—
(7
)
Net payments related to stock-based award
activities
(69
)
(100
)
Repurchase of common stock
(100
)
(366
)
Cash dividends paid to non-controlling
interests, net of contributions
(8
)
—
Cash dividends paid to shareholders
(507
)
(465
)
Net cash used in financing activities
(1,372
)
(168
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(35
)
138
Decrease in cash, cash equivalents and
restricted cash
(676
)
(1,631
)
Cash, cash equivalents and restricted cash
at beginning of period
4,581
4,763
Cash, cash equivalents and restricted cash
at end of period
$
3,905
$
3,132
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Segment Information
(Unaudited)
For the three months
ended
July 31, 2024
April 30, 2024
July 31, 2023
In millions
Net Revenue:
Server(3)
$
4,280
$
3,867
$
3,168
Hybrid Cloud(3)
1,300
1,256
1,397
Intelligent Edge(3)
1,121
1,086
1,456
Financial Services
879
867
873
Corporate Investments and other(3)
262
252
246
Total segment net revenue
7,842
7,328
7,140
Elimination of intersegment net
revenue
(132
)
(124
)
(138
)
Total consolidated net revenue
$
7,710
$
7,204
$
7,002
Earnings Before Taxes(3):
Server
$
464
$
426
$
319
Hybrid Cloud
66
10
75
Intelligent Edge
251
237
402
Financial Services
79
81
72
Corporate Investments and other
(4
)
(9
)
(20
)
Total segment earnings from operations
856
745
848
Unallocated corporate costs and
eliminations
(85
)
(61
)
(130
)
Stock-based compensation expense
(80
)
(120
)
(91
)
Amortization of intangible assets
(60
)
(67
)
(72
)
Transformation costs
(14
)
(33
)
(65
)
Disaster recovery
2
7
2
Divestiture related exit costs
(35
)
—
—
Acquisition, disposition and other related
charges
(37
)
(46
)
(21
)
Interest and other, net(1)
(12
)
(22
)
(8
)
Earnings from equity interests
73
42
73
Total pretax earnings
$
608
$
445
$
536
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Segment Information
(Unaudited)
For the nine months
ended
July 31, 2024
July 31, 2023
In millions
Net Revenue:
Server(3)
$
11,499
$
10,787
Hybrid Cloud(3)
3,804
4,152
Intelligent Edge(3)
3,408
3,969
Financial Services
2,619
2,604
Corporate Investments and other(3)
752
722
Total segment net revenue
22,082
22,234
Elimination of intersegment net
revenue
(413
)
(450
)
Total consolidated net revenue
$
21,669
$
21,784
Earnings Before Taxes(3):
Server
$
1,273
$
1,470
Hybrid Cloud
123
181
Intelligent Edge
841
961
Financial Services
234
211
Corporate Investments and other
(23
)
(61
)
Total segment earnings from operations
2,448
2,762
Unallocated corporate costs and
eliminations
(218
)
(327
)
Stock-based compensation expense
(341
)
(357
)
Amortization of intangible assets
(198
)
(216
)
Transformation costs
(67
)
(227
)
Disaster recovery (charges)
34
(2
)
Divestiture related exit costs
(35
)
—
Acquisition, disposition and other related
charges
(126
)
(51
)
Interest and other, net(1)
(122
)
(81
)
Earnings from equity interests
161
180
Total consolidated earnings before
taxes
$
1,536
$
1,681
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Segment Information
(Unaudited)
For the three months
ended
Change (%)
July 31, 2024
April 30, 2024
July 31, 2023
Q/Q
Y/Y
Dollars in millions
Net Revenue:
Server(3)
$
4,280
$
3,867
$
3,168
11%
35%
Hybrid Cloud(3)
1,300
1,256
1,397
4
(7)
Intelligent Edge(3)
1,121
1,086
1,456
3
(23)
Financial Services
879
867
873
1
1
Corporate Investments and other(3)
262
252
246
4
7
Total segment net revenue
7,842
7,328
7,140
7
10
Elimination of intersegment net
revenue
(132
)
(124
)
(138
)
7
(4)
Total consolidated net revenue
$
7,710
$
7,204
$
7,002
7%
10%
For the nine months
ended
July 31, 2024
July 31, 2023
Y/Y
Dollars in millions
Net Revenue:
Server(3)
$
11,499
$
10,787
7%
Hybrid Cloud(3)
3,804
4,152
(8)
Intelligent Edge(3)
3,408
3,969
(14)
Financial Services
2,619
2,604
1
Corporate Investments and other(3)
752
722
4
Total segment net revenue
22,082
22,234
(1)
Elimination of intersegment net
revenue
(413
)
(450
)
(8)
Total consolidated net revenue
$
21,669
$
21,784
(1%)
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Segment Operating Margin
Summary Data
(Unaudited)
For the three months
ended
Change in operating profit
margin (pts)
July 31, 2024
April 30, 2024
July 31, 2023
Q/Q
Y/Y
Segment Operating Profit Margin(3):
Server
10.8 %
11.0 %
10.1 %
(0.2)
0.7
Hybrid Cloud
5.1 %
0.8 %
5.4 %
4.3
(0.3)
Intelligent Edge
22.4 %
21.8 %
27.6 %
0.6
(5.2)
Financial Services
9.0 %
9.3 %
8.2 %
(0.3)
0.8
Corporate Investments and other
(1.5 %)
(3.6 %)
(8.1 %)
2.1
6.6
Total segment operating profit margin
10.9 %
10.2 %
11.9 %
0.7
(1.0)
For the nine months
ended
Change in operating profit
margin (pts)
July 31, 2024
July 31, 2023
Y/Y
Segment Operating Profit Margin(3):
Server
11.1 %
13.6 %
(2.5)
Hybrid Cloud
3.2 %
4.4 %
(1.2)
Intelligent Edge
24.7 %
24.2 %
0.5
Financial Services
8.9 %
8.1 %
0.8
Corporate Investments and other
(3.1 %)
(8.4 %)
5.3
Total segment operating profit margin
11.1 %
12.4 %
(1.3)
HEWLETT PACKARD ENTERPRISE
COMPANY AND SUBSIDIARIES
Calculation of Diluted Net
Earnings Per Share
(Unaudited)
For the three months
ended
July 31, 2024
April 30, 2024
July 31, 2023
In millions, except per share
amounts
Numerator:
GAAP net earnings
$
512
$
314
$
464
Non-GAAP net earnings
$
661
$
561
$
639
Denominator:
Weighted-average shares used to compute
basic net earnings per share
1,312
1,311
1,299
Dilutive effect of employee stock
plans
20
14
17
Weighted-average shares used to compute
diluted net earnings per share
1,332
1,325
1,316
GAAP Net Earnings Per Share
Basic
$
0.39
$
0.24
$
0.36
Diluted
$
0.38
$
0.24
$
0.35
Non-GAAP Net Earnings Per Share
Basic
$
0.50
$
0.43
$
0.49
Diluted
$
0.50
$
0.42
$
0.49
For the nine months
ended
July 31, 2024
July 31, 2023
In millions, except per share
amounts
Numerator:
GAAP net earnings
$
1,213
$
1,383
Non-GAAP net earnings
$
1,860
$
2,152
Denominator:
Weighted-average shares used to compute
basic net earnings per share
1,308
1,300
Dilutive effect of employee stock
plans
17
17
Weighted-average shares used to compute
diluted net earnings per share
1,325
1,317
GAAP Net Earnings Per Share
Basic
$
0.93
$
1.06
Diluted
$
0.92
$
1.05
Non-GAAP Net Earnings Per Share
Basic
$
1.42
$
1.66
Diluted
$
1.40
$
1.63
(1)
Interest and other, net includes
tax indemnification and other adjustments, non-service net periodic
benefit cost, and interest and other, net.
(2)
Other adjustments includes
non-service net periodic benefit cost and tax indemnification and
other adjustments.
(3)
As previously disclosed,
effective as of the beginning of the first quarter of fiscal 2024,
in order to align the segment financial reporting more closely with
its business structure, the Company established two new reportable
segments, Hybrid Cloud and Server. Hybrid Cloud includes the
historical Storage segment, HPE GreenLake Flex Solutions (which
provides flexible as-a-service IT infrastructure through the HPE
GreenLake edge-to-cloud platform and was previously reported under
the Compute and the High Performance Computing & Artificial
Intelligence ("HPC & AI") segments), Private Cloud, and
Software (previously reported under the Corporate Investments and
Other segment). The Server segment combines the previously
separately reported Compute and HPC & AI segments, with
adjustments for certain product lines that are now reported in
Hybrid Cloud. Additionally, certain products and services
previously reported in the financial results for the HPC & AI
segment were moved to be reported in the Hybrid Cloud segment, and
the Athonet business and certain components of the Communications
and Media Solutions business, both previously reported in the
financial results for Corporate Investments and Other, moved to be
reported in the Intelligent Edge segment.
As a result, the Company’s new
organizational structure consists of the following segments: (i)
Server; (ii) Hybrid Cloud; (iii) Intelligent Edge; (iv) Financial
Services; and (v) Corporate Investments and Other. The Company
began reporting under this re-aligned segment structure beginning
with the results of the first quarter of fiscal 2024.
The Company has reflected these
changes to its segment information retrospectively to the earliest
period presented, which primarily resulted in the realignment of
net revenue and operating profit for each of the segments as
described above. These changes had no impact on Hewlett Packard
Enterprise’s previously reported consolidated net revenue, net
earnings, net earnings per share or total assets.
Use of non-GAAP financial measures
To supplement Hewlett Packard Enterprise’s condensed
consolidated financial statement information presented on a GAAP
basis, Hewlett Packard Enterprise provides non-GAAP financial
measures including revenue on a constant currency basis (including
at the business segment level), non-GAAP gross profit, non-GAAP
gross profit margin, non-GAAP operating profit (non-GAAP earnings
from operations), non-GAAP operating profit margin (non-GAAP
earnings from operations as a percentage of net revenue), non-GAAP
income tax rate, non-GAAP net earnings, non-GAAP diluted net
earnings per share, and FCF. Hewlett Packard Enterprise also
provides forecasts of revenue growth on a constant currency basis,
non-GAAP diluted net earnings per share, non-GAAP operating profit
growth, and FCF.
These non-GAAP financial measures are not computed in accordance
with, or as an alternative to, GAAP in the United States. The GAAP
measure most directly comparable to net revenue on a constant
currency basis is net revenue. The GAAP measure most directly
comparable to non-GAAP gross profit is gross profit. The GAAP
measure most directly comparable to non-GAAP gross profit margin is
gross profit margin. The GAAP measure most directly comparable to
non-GAAP operating profit (non-GAAP earnings from operations) is
earnings from operations. The GAAP measure most directly comparable
to non-GAAP operating profit margin (non-GAAP earnings from
operations as a percentage of net revenue) is operating profit
margin (earnings from operations as a percentage of net revenue).
The GAAP measure most directly comparable to non-GAAP income tax
rate is income tax rate. The GAAP measure most directly comparable
to non-GAAP net earnings is net earnings. The GAAP measure most
directly comparable to non-GAAP diluted net earnings per share is
diluted net earnings per share. The GAAP measure most directly
comparable to FCF is cash flow from operations. Reconciliations of
each of these non-GAAP financial measures to their most directly
comparable GAAP measures for this quarter and prior periods are
included in the tables above or elsewhere in the materials
accompanying this news release.
Usefulness of non-GAAP financial measures to
investors
Hewlett Packard Enterprise believes that providing the non-GAAP
financial measures stated above, in addition to the related GAAP
measures provides investors with greater transparency to the
information used by Hewlett Packard Enterprise’s management in its
financial and operational decision making and allows investors to
see Hewlett Packard Enterprise’s results “through the eyes” of
management. Hewlett Packard Enterprise further believes that
providing this information provides Hewlett Packard Enterprise’s
investors with a supplemental view to understand the Company’s
historical and prospective operating performance and to evaluate
the efficacy of the methodology and information used by Hewlett
Packard Enterprise’s management to evaluate and measure such
performance. Disclosure of these non-GAAP financial measures also
facilitates the comparisons of Hewlett Packard Enterprise’s
operating performance with the performance of other companies in
the same industry that supplement their GAAP results with non-GAAP
financial measures that may be calculated in a similar manner.
Economic substance of and material limitations associated
with non-GAAP financial measures used by Hewlett Packard
Enterprise
Net revenue on a constant currency basis assumes no change to
the foreign exchange rate utilized in the comparable prior-year
period. This measure assists investors with evaluating the
Company’s past and future performance, without the impact of
foreign exchange rates, as more than half of our revenue is
generated outside of the U.S. Non-GAAP gross profit and non-GAAP
gross profit margin are defined to exclude charges related to the
stock-based compensation expense, disaster (recovery) charges, and
divestiture related exit costs. Non-GAAP operating profit (non-GAAP
earnings from operations) and non-GAAP operating profit margin
(non-GAAP earnings from operations as a percentage of net revenue)
consist of earnings from operations or earnings from operations as
a percentage of net revenue excluding the items mentioned above and
charges relating to the amortization of intangible assets,
transformation costs, and acquisition, disposition and other
related charges. Non-GAAP net earnings and non-GAAP diluted net
earnings per share consist of net earnings or diluted net earnings
per share excluding the charges previously stated, as well as
earnings from equity interests, gain or loss on equity investments,
other adjustments, and adjustments for taxes. The Adjustments for
taxes line item includes certain income tax valuation allowances
and separation taxes, the impact of tax reform, structural rate
adjustment, excess tax benefit from stock-based compensation, and
adjustments for additional taxes or tax benefits associated with
each non-GAAP item.
Hewlett Packard Enterprise believes that excluding the items
mentioned above from the non-GAAP financial measures provides a
supplemental view to management and investors of its consolidated
financial performance and presents the financial results of the
business without costs that Hewlett Packard Enterprise’s management
does not believe to be reflective of ongoing operating results.
Exclusion of these items can have a material impact on the
equivalent GAAP measure and cash flows thus limiting their use as
analytical tools. These limitations are discussed below or
elsewhere in the materials accompanying this news release. More
specifically, Hewlett Packard Enterprise’s management excludes each
of those items mentioned above for the following reasons:
- Hewlett Packard Enterprise incurs charges relating to the
amortization of intangible assets and excludes these charges for
purposes of calculating these non-GAAP measures. Such charges are
significantly impacted by the timing and magnitude of Hewlett
Packard Enterprise’s acquisitions. Hewlett Packard Enterprise
excludes these charges for the purpose of calculating these
non-GAAP measures, primarily because they are non-cash expenses and
the Company’s internal benchmarking analyses evidence that many
industry participants and peers present non-GAAP financial measures
excluding intangible asset amortization. Although this does not
directly affect Hewlett Packard Enterprise’s cash position, the
loss in value of intangible assets over time can have a material
impact on the equivalent GAAP earnings measure.
- Transformation costs represent net costs related to the (i) HPE
Next Plan and (ii) Cost Optimization and Prioritization Plan and
include restructuring charges, program design and execution costs,
costs incurred to transform the Company’s IT infrastructure, net
gains from the sale of real estate and any impairment charges on
real estate identified as part of the initiatives. Hewlett Packard
Enterprise excludes these costs as they are discrete costs related
to two specific transformation programs that were announced in 2017
and 2020, respectively, as multi-year programs necessary to
transform the business and IT infrastructure following material
divestiture transactions in 2017 and in response to COVID-19 and an
evolving product portfolio in fiscal 2020. The HPE Next Plan and
the Cost Optimization and Prioritization Plan are substantially
complete. The exclusion of the transformation program costs from
the non-GAAP financial measures, as stated above, is to provide a
supplemental measure of the Company’s operating results that do not
include material HPE Next Plan and the Cost Optimization and
Prioritization Plan costs as the Company’s management does not
believe such costs to be reflective of its ongoing operating cost
structure. Further, the transformation costs for these plans have
materially fluctuated since 2017, have been materially declining
since 2021 and the Company does not expect these costs to be
material. Hewlett Packard Enterprises management believes non-GAAP
measures excluding these costs are useful to management and
investors for comparing operating performance across multiple
periods.
- Disaster (recovery) charges are primarily related to the exit
of the Company’s businesses in Russia and Belarus, and include
credit losses of financing and trade receivables, employee
severance and abandoned assets. Disaster charges also include
direct costs or recovery of these costs. Hewlett Packard Enterprise
excludes Disaster (recovery) charges from these non-GAAP measures
as the specific charges are non-recurring charges and not
indicative of the operational performance of the Company’s
business.
- Stock-based compensation expense consists of equity awards
granted based on the estimated fair value of those awards at grant
date. Although stock-based compensation is a key incentive offered
to employees, Hewlett Packard Enterprise excludes these charges for
the purpose of calculating these non-GAAP measures, primarily
because they are non-cash expenses, and the Company’s internal
benchmarking analyses evidence that many industry participants and
peers present non-GAAP financial measures excluding stock-based
compensation expense.
- Divestiture related exit costs include expenses associated with
certain disposal activities. On May 23, 2024, HPE announced plans
to divest the Company’s Communication Technology Group (“CTG”)
business. CTG is included in our Communications and Media Solutions
business, which is reported in the Corporate Investments and Other
segment. We consider this divestiture to be a discrete event. We
exclude these costs as these are non-recurring exit costs to
eliminate stranded costs of this business. In addition, our
internal benchmarking analyses evidence that many industry
participants and peers present non-GAAP financial measures
excluding these charges.
- Hewlett Packard Enterprise incurs costs related to its
acquisition, disposition and other related charges. The charges are
direct expenses, such as professional fees and retention costs,
most of which are treated as non-cash or non-capitalized expenses.
For the three and nine months ended July 31, 2024, these charges
were driven by costs associated with the pending acquisition of
Juniper Networks, in addition to prior acquisitions of Axis,
Athonet and OpsRamp. For the three and nine months ended July 31,
2023, these charges were driven by acquisitions of Axis, Zerto,
Athonet and OpsRamp. Charges may also include expenses associated
with disposal activities including legal and arbitration
settlements in connection with certain dispositions. Hewlett
Packard Enterprise’s management considers these acquisitions and
divestitures to be discrete events. The Company excludes these
costs as these expenses are inconsistent in amount and frequency
and are significantly impacted by the timing and nature of its
acquisitions and divestitures. In addition, the Company’s internal
benchmarking analyses evidence that many industry participants and
peers present non-GAAP financial measures excluding these
charges.
- During the three and six months ended April 30, 2024, we
stopped reporting H3C earnings in our non-GAAP results due to the
planned divestiture of the H3C investment. Per the terms of the
original Put Share Purchase Agreement described in Note 20 “Equity
Method Investments” to the Consolidated Financial Statements in
Item 8 of Part II of the Company Annual Report on Form 10-K for the
fiscal year ended October 31, 2023, we weren’t anticipating
receiving dividends from this investment prospectively. However, on
May 24, 2024, we entered into an Amended and Restated Put Share
Purchase Agreement and an Agreement on Subsequent Arrangements,
both with UNIS, as described in the Form 8-K filed with the
Securities and Exchange Commission on May 24, 2024, which, taken
together, revise the arrangements governing the aforementioned sale
as previously set forth in the original Put Share Purchase
Agreement. For the three months ended July 31, 2024, the adjustment
to earnings from equity interests represents our expectation at
such time to divest 30% of the total issued share capital of H3C in
fiscal 2024. On September 4, 2024, we divested 30% of the total
issued share capital of H3C. We continue to possess the option to
sell the remaining 19% of the total issued share capital of H3C at
a later date. Prospectively, the adjustment to earnings from equity
interests will incorporate the completed divestment of 30% of the
total issued share capital of H3C. All periods presented include
the amortization of the basis difference in our investment. For the
nine months ended July 31, 2023, this adjustment also included our
portion of intangible asset impairment charges from H3C. We believe
that eliminating these amounts for purposes of calculating non-GAAP
financial measures facilitates the evaluation of our current
operating performance.
- Hewlett Packard Enterprise excludes gains and losses (including
impairments) on its non-marketable equity investments because the
Company does not believe they are reflective of normal continuing
business operations. These adjustments are reflected in Interest
and other, net in the Condensed Consolidated Statements of
Earnings. The Company believes eliminating these adjustments for
the purposes of calculating non-GAAP measures facilitates the
evaluation of its current operating performance.
- Hewlett Packard Enterprise utilizes a structural long-term
projected non-GAAP income tax rate in order to provide consistency
across the interim reporting periods and to eliminate the effects
of items not directly related to the Company’s operating structure
that can vary in size and frequency. When projecting this long-term
rate, Hewlett Packard Enterprise evaluated a three-year financial
projection. The projected rate assumes no incremental acquisitions
in the three-year projection period and considers other factors
including Hewlett Packard Enterprise’s expected tax structure, its
tax positions in various jurisdictions and current impacts from key
legislation implemented in major jurisdictions where Hewlett
Packard Enterprise operates. For fiscal 2024, the Company will use
a projected non-GAAP income tax rate of 15%, which reflects
currently available information as well as other factors and
assumptions. The non-GAAP income tax rate could be subject to
change for a variety of reasons, including the rapidly evolving
global tax environment, significant changes in Hewlett Packard
Enterprise’s geographic earnings mix including due to acquisition
activity, or other changes to the Company’s strategy or business
operations. The Company will re-evaluate its long-term rate as
appropriate. For fiscal 2023, the Company had a non-GAAP tax rate
of 14%. Hewlett Packard Enterprise’s management believes that
making these adjustments for purposes of calculating non-GAAP
measures, facilitates a supplemental evaluation of the Company’s
current operating performance and comparisons to past operating
results.
- FCF is defined as cash flow from operations, less net capital
expenditures (investments in property, plant & equipment
(“PP&E”) and software assets less proceeds from the sale of
PP&E), and adjusted for the effect of exchange rate
fluctuations on cash, cash equivalents, and restricted cash. FCF
does not represent the total increase or decrease in cash for the
period. Hewlett Packard Enterprise’s management and investors can
use FCF for the purpose of determining the amount of cash available
for investment in the Company’s businesses, repurchasing stock and
other purposes as well as evaluating its historical and prospective
liquidity.
Compensation for material limitations with use of non-GAAP
financial measures
These non-GAAP financial measures have limitations as analytical
tools, and these measures should not be considered in isolation or
as a substitute for analysis of Hewlett Packard Enterprise’s
results as reported under GAAP. Some of the limitations in relying
on these non-GAAP financial measures are that they can have a
material impact on the equivalent GAAP earnings measures and cash
flows, they may be calculated differently by other companies
(limiting the usefulness of those measures for comparative
purposes) and may not reflect the full economic effect of the loss
in value of certain assets. Hewlett Packard Enterprise compensates
for these limitations on the use of non-GAAP financial measures by
relying primarily on its GAAP results and using non-GAAP financial
measures only as a supplement. Hewlett Packard Enterprise also
provides a reconciliation of each non-GAAP financial measure to its
most directly comparable GAAP financial measure for this quarter
and prior periods within this news release and in other written
materials that include these non-GAAP financial measures, and
Hewlett Packard Enterprise encourages investors to review those
reconciliations carefully.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240904070877/en/
Media Contact: Laura Keller Laura.Keller@hpe.com
Investor Contact: Paul Glaser
investor.relations@hpe.com
Hewlett Packard Enterprise (NYSE:HPE)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Hewlett Packard Enterprise (NYSE:HPE)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
