NYSE$HPE

Hewlett Packard Enterprise Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported revenue growth, strong profitability, and cash flow, raised FY21 EPS and FCF outlook.

Hewlett Packard Enterprise announced strong Q2 2021 results, marked by revenue growth of 11% year-over-year, strong profitability, and free cash flow generation. The company raised its full-year EPS and free cash flow outlook, reflecting continued momentum in the demand environment and strong operational performance.

  • Revenue was $6.7 billion, up 11% year-over-year.
  • Annualized revenue run-rate (ARR) was $678 million, up 30% year-over-year.
  • GAAP EPS was $0.19, and non-GAAP EPS was $0.46, up 70% year-over-year.
  • Free cash flow was $368 million, up $770 million from the prior-year period.

Headline financials

Total Revenue

$6.7B

Previous: $6.01B+11.5%
EPS (adj)

$0.46

Previous: $0.22+109.1%
Gross Margin

34.1%

Previous: 31.9%+6.9%
Non-GAAP Gross Margin

34.3%

Previous: 32.0%+7.2%
Free Cash Flow

$368M

Previous: -$402M+191.5%
Net Income

$259M

Previous: -$821M+131.5%
Operating Income

$278M

Previous: -$834M+133.3%
Gross Profit

$6.61B

Previous: $5.93B+11.5%
Cash & Equivalents

$4.63B

Previous: $5.13B-9.9%
Total Assets

$54.1B

Previous: $54.5B-0.7%
Stock-Based Comp

$105M

Previous: $67M+56.7%

Revenue & EPS history

Hewlett Packard Enterprise · Revenue · Quarterly

$6.7B

Q2 2021+11.5%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
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: Fiscal 2021 Third quarter: Estimates GAAP diluted net EPS to be in the range of $0.04 to $0.10 and non-GAAP diluted net EPS to be in the range of $0.38 to $0.44 and Fiscal 2021: Raises GAAP diluted net EPS outlook to $0.60 to $0.72 and non-GAAP diluted net EPS outlook to $1.82 to $1.94 and Raises free cash flow guidance to $1.2 to $1.5 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 Q2 2021

Historical avgQ2 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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