NYSE$HPE

Hewlett Packard Enterprise Co · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Exceeded profitability expectations and continued to scale recurring revenue, advancing long-term strategy.

Hewlett Packard Enterprise (HPE) reported mixed Q1 2024 results with revenue down 14% year-over-year to $6.8 billion, but exceeded profitability expectations. The company drove near-record year-over-year growth in recurring revenue, with ARR up 42% to $1.4 billion. HPE remains confident in capitalizing on market opportunities in AI, edge, and hybrid cloud.

  • HPE exceeded profitability expectations despite market headwinds.
  • Annualized revenue run-rate (ARR) increased by 42% year-over-year to $1.4 billion.
  • GAAP EPS was $0.29, above the midpoint of guidance, while non-GAAP EPS was $0.48, at the high end of guidance.
  • Free cash flow was $(482) million, an increase of $844 million from the prior-year period.

Headline financials

Total Revenue

$6.76B

Previous: $7.81B-13.5%
EPS

$0.29

Previous: $0.63-54.0%
Gross Margin

36.4%

Previous: 34.0%+7.1%
Free Cash Flow

-$482M

Previous: -$1.33B+63.7%
Capital Expenditures

-$656M

No prior period
Net Income

$387M

Previous: $501M-22.8%
Operating Income

$525M

Previous: $591M-11.2%
Gross Profit

$6.63B

Previous: $7.71B-14.1%
Cash & Equivalents

$3.76B

Previous: $2.53B+48.5%
Total Assets

$58.6B

Previous: $55.6B+5.4%
R&D Expense

$582M

No prior period
Stock-Based Comp

$141M

Previous: $140M+0.7%

Revenue & EPS history

Hewlett Packard Enterprise · Revenue · Quarterly

$6.76B

Q1 2024-13.5%vs Q1 2023
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 revenue to be in the range of $6.6 billion to $7.0 billion for the second quarter. HPE estimates GAAP diluted net EPS to be in the range of $0.20 to $0.25 and non-GAAP diluted net EPS to be in the range of $0.36 to $0.41. HPE estimates fiscal 2024 revenue growth to be flat to 2%, in constant currency, and fiscal 2024 GAAP operating profit growth to be in the range of 7% to 11% and non-GAAP operating profit growth to be flat to 2%. HPE estimates GAAP diluted net EPS to be in the range of $1.81 and $1.91 and non- GAAP diluted net EPS to be in the range of $1.82 and $1.92. HPE estimates free cash flow to be at least $1.9 billion.

Tailwinds

  • Revenue to be in the range of $6.6 billion to $7.0 billion for the second quarter.
  • GAAP diluted net EPS to be in the range of $0.20 to $0.25 for the second quarter.
  • Non-GAAP diluted net EPS to be in the range of $0.36 to $0.41 for the second quarter.
  • Fiscal 2024 revenue growth to be flat to 2%, in constant currency.
  • Free cash flow to be at least $1.9 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 2024

Historical avgQ1 2024

-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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