NYSE$HPE

Hewlett Packard Enterprise Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

HPE reported solid results in Q2 2024, exceeding revenue and non-GAAP EPS guidance with AI systems revenue doubling sequentially.

Hewlett Packard Enterprise (HPE) announced its financial results for the second quarter ended April 30, 2024, with revenue at $7.2 billion, up 3% year-over-year. The company exceeded revenue and non-GAAP EPS guidance, driven by strong AI systems order conversion and prudent cost discipline. Due to robust AI systems order momentum and disciplined execution across the portfolio, HPE is raising its revenue and non-GAAP EPS guidance for the full year.

  • Revenue was $7.2 billion, up 3% year-over-year.
  • ARR was $1.5 billion, up 37% year-over-year.
  • GAAP EPS was $0.24, and non-GAAP EPS was $0.42, above the guidance range.
  • Free cash flow was $610 million, an increase of $322 million year-over-year.

Headline financials

Total Revenue

$7.2B

Previous: $6.97B+3.3%
EPS

$0.24

Previous: $0.52-53.8%
Gross Margin

33.0%

Previous: 36.0%-8.3%
Non-GAAP Gross Margin

33.1%

No prior period
Free Cash Flow

$610M

No prior period
Capital Expenditures

-$560M

No prior period
Net Income

$314M

Previous: $418M-24.9%
Operating Income

$425M

Previous: $520M-18.3%
Gross Profit

$7.06B

Previous: $6.86B+3.0%
Cash & Equivalents

$2.68B

Previous: $2.78B-3.8%
Total Assets

$59.7B

Previous: $55.5B+7.5%
R&D Expense

$590M

No prior period
Stock-Based Comp

$120M

Previous: $126M-4.8%

Revenue & EPS history

Hewlett Packard Enterprise · Revenue · Quarterly

$7.2B

Q2 2024+3.3%vs Q2 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 $7.4 billion to $7.8 billion for the third quarter of fiscal 2024. HPE estimates GAAP diluted net EPS to be in the range of $0.29 to $0.34 and non-GAAP diluted net EPS to be in the range of $0.43 to $0.48.

Tailwinds

  • Revenue to be in the range of $7.4 billion to $7.8 billion.
  • GAAP diluted net EPS to be in the range of $0.29 to $0.34.
  • Non-GAAP diluted net EPS to be in the range of $0.43 to $0.48.

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 2024

Historical avgQ2 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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