NYSE$HPE

Hewlett Packard Enterprise Co · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

HPE delivered record-setting Q1 performance and raised fiscal 2023 guidance.

Hewlett Packard Enterprise (HPE) reported exceptional Q1 results, achieving the highest first-quarter revenue since 2016. The company's annualized revenue run rate (ARR) exceeded $1 billion for the first time, driven by the HPE GreenLake hybrid cloud platform. The company has raised financial outlook for the full year.

  • Revenue of $7.8 billion was up 12% from the prior-year period.
  • Annualized revenue run-rate (ARR) for the first time exceeded $1 billion and was up 26% from the prior-year period
  • Non-GAAP EPS of $0.63 was up 19% from the prior-year period, exceeding guidance.
  • HPE delivered exceptional results in Q1, posting our highest first quarter revenue since 2016 and best-ever non-GAAP operating profit margin.

Headline financials

Total Revenue

$7.81B

Previous: $6.96B+12.2%
EPS (adj)

$0.63

Previous: $0.53+18.9%
Gross Margin

34.0%

Previous: 33.7%+0.9%
Non-GAAP Gross Margin

34.2%

Previous: 33.9%+0.9%
Free Cash Flow

-$1.33B

No prior period
Net Income

$501M

Previous: $513M-2.3%
Operating Income

$591M

Previous: $448M+31.9%
Gross Profit

$7.71B

Previous: $6.89B+11.9%
Cash & Equivalents

$2.53B

Previous: $3.86B-34.5%
Total Assets

$55.6B

Previous: $57.9B-3.9%
Stock-Based Comp

$140M

Previous: $128M+9.4%

Revenue & EPS history

Hewlett Packard Enterprise · Revenue · Quarterly

$7.81B

Q1 2023+12.2%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

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

  • Corporate Investments
    $126M

Forward guidance

HPE estimates Q2 fiscal 2023 revenue to be in the range of $7.1 billion to $7.5 billion, and raises fiscal 2023 revenue growth estimate to be in the range of 5%-7% adjusted for currency. HPE raises guidance of fiscal 2023 GAAP diluted net EPS to be in the range of $1.40 to $1.48 and non-GAAP diluted net EPS to be in the range of $2.02 to $2.10. HPE reiterates guidance of $1.9 billion to $2.1 billion free cash flow.

Tailwinds

  • Estimates Q2 fiscal 2023 revenue to be in the range of $7.1 billion to $7.5 billion
  • Raises fiscal 2023 revenue growth estimate to be in the range of 5%-7% adjusted for currency
  • Estimates Q2 fiscal 2023 GAAP diluted net EPS to be in the range of $0.27 to $0.35 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.52
  • Raises guidance of fiscal 2023 GAAP diluted net EPS to be in the range of $1.40 to $1.48 and non-GAAP diluted net EPS to be in the range of $2.02 to $2.10
  • Reiterates guidance of $1.9 billion to $2.1 billion free cash flow

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 2023

Historical avgQ1 2023

-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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