NYSE$HPE

Hewlett Packard Enterprise Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

HPE's Q1 2021 performance was marked by strong profitability and cash flow, leading to an increased FY21 EPS and FCF outlook.

Hewlett Packard Enterprise (HPE) reported strong Q1 2021 results, with revenue exceeding expectations and significant expansion of gross and operating margins. Non-GAAP EPS surpassed the high end of guidance, and free cash flow reached a record for Q1. The company raised its FY21 outlook based on these results.

  • Revenue exceeded Q1 outlook with stronger than normal sequential seasonality, reaching $6.8 billion.
  • Intelligent Edge revenue increased by 11% year-over-year when adjusted for currency, totaling $806 million.
  • Annualized revenue run-rate (ARR) grew by 27% from the prior-year period, reaching $649 million.
  • Record free cash flow of $563 million was generated, an increase of $748 million from the prior-year period.

Headline financials

Total Revenue

$6.83B

Previous: $6.95B-1.7%
EPS (adj)

$0.52

Previous: $0.44+18.2%
Free Cash Flow

$563M

Previous: -$185M+404.3%
Net Income

$223M

Previous: $333M-33.0%
Operating Income

$222M

Previous: $348M-36.2%
Gross Profit

$6.76B

Previous: $6.87B-1.7%
Cash & Equivalents

$4.17B

Previous: $3.17B+31.3%
Total Assets

$53.5B

Previous: $52.2B+2.3%
Stock-Based Comp

$113M

Previous: $93M+21.5%

Revenue & EPS history

Hewlett Packard Enterprise · Revenue · Quarterly

$6.83B

Q1 2021-1.7%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Hewlett Packard Enterprise · $126M total across 1 segment · Q4 2020

  • Corporate Investments
    $126M

Forward guidance

Hewlett Packard Enterprise provided the following outlook for fiscal year 2021: Estimates GAAP diluted net EPS to be in the range of $0.02 to $0.08 and non-GAAP diluted net EPS to be in the range of $0.38 to $0.44. Raises GAAP diluted net EPS outlook to $0.48 to $0.66 and non-GAAP diluted net EPS outlook to $1.70 to $1.88. Raises free cash flow guidance to $1.1 to $1.4 billion.

Tailwinds

  • Estimates GAAP diluted net EPS to be in the range of $0.02 to $0.08
  • Estimates non-GAAP diluted net EPS to be in the range of $0.38 to $0.44
  • Raises GAAP diluted net EPS outlook to $0.48 to $0.66
  • Raises non-GAAP diluted net EPS outlook to $1.70 to $1.88
  • Raises free cash flow guidance to $1.1 to $1.4 billion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.0%

Avg return

30 days after

49%

23 / 47 earnings

Positive

+11.6%

Q1 2018

Best reaction

-12.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.2%-1.1%+13.8%
Q4 2025+10.2%+10.3%+5.5%
Q3 2025+1.4%+4.6%+7.1%
Q2 2025+0.7%+3.5%+20.6%
Q1 2025-12.0%-16.0%-28.8%
Q4 2024+10.1%+0.7%+0.3%
Q3 2024-7.5%-7.7%+8.2%
Q2 2024+8.5%+11.6%+15.2%
Q1 2024+4.7%+21.8%+19.3%
Q4 2023+5.9%+8.3%+10.1%
Q3 2023+3.4%+7.1%+5.0%
Q2 2023-6.0%-0.7%+8.5%
Q1 2023-1.7%-3.4%+2.5%
Q4 2022+7.9%+7.3%+2.4%
Q3 2022-0.9%-3.5%-11.7%
Q2 2022-4.1%-2.4%-16.9%
Q1 2022+6.7%+3.1%+5.0%
Q4 2021-2.7%+3.8%+8.8%
Q3 2021+0.9%-2.1%-4.7%
Q2 2021+0.7%+1.6%-7.9%
Q1 2021-0.3%-1.4%+7.5%
Q4 2020+4.3%+11.8%+7.3%
Q3 2020+0.5%+2.2%-5.1%
Q2 2020-10.8%-8.4%-4.5%
Q1 2020-4.9%-7.0%-27.2%
Q4 2019-6.7%-7.5%-7.0%
Q3 2019+3.3%+6.8%+13.1%
Q2 2019-2.2%-3.7%+1.6%
Q1 2019+1.7%+4.7%-4.7%
Q4 2018+3.4%-5.1%-15.0%
Q3 2018+1.6%+0.5%-1.0%
Q2 2018-11.0%-11.4%-11.9%
Q1 2018+11.6%+15.8%+8.5%
Q4 2017-7.0%-5.5%+4.5%
Q3 2017-3.8%-8.3%+3.6%
Q2 2017-7.0%-9.0%-12.0%
Q1 2017-7.4%-7.9%-8.1%
Q4 2016+1.9%+0.4%+2.8%
Q3 2015-5.3%-4.2%+1.1%
Q3 2016-2.2%-2.6%+2.2%
Q2 2016+7.9%+13.6%+22.3%
Q1 2015+5.4%
Q1 2016+11.0%
Q4 2015-3.6%
Q4 2014-3.6%
Q4 2013-3.6%
Q2 2015-3.6%
Q3 2014
Q2 2014
Q1 2014

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