NYSE$HPE

Hewlett Packard Enterprise Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Edge momentum and portfolio mix shift drove revenue growth and gross margin expansion.

Hewlett Packard Enterprise (HPE) reported solid Q3 2023 results, driven by strong performances in Intelligent Edge and HPE GreenLake. Revenue increased by 1% year-over-year to $7.0 billion, and non-GAAP diluted net EPS was $0.49, above the guidance range.

  • Revenue was $7.0 billion, up 1% year-over-year.
  • ARR was $1.3 billion, up 48% year-over-year.
  • GAAP EPS was $0.35, up 13% year-over-year.
  • Free cash flow was $955 million, up $368 million year-over-year.

Headline financials

Total Revenue

$7B

Previous: $6.95B+0.7%
EPS (adj)

$0.49

Previous: $0.48+2.1%
Gross Margin

35.8%

Previous: 34.5%+3.8%
Non-GAAP Gross Margin

35.9%

No prior period
Free Cash Flow

$955M

Previous: $587M+62.7%
Net Income

$464M

Previous: $409M+13.4%
Operating Income

$471M

Previous: $466M+1.1%
Gross Profit

$6.86B

Previous: $6.74B+1.8%
Cash & Equivalents

$2.92B

Previous: $3.76B-22.4%
Total Assets

$56.4B

Previous: $57.7B-2.2%
Stock-Based Comp

$91M

Previous: $64M+42.2%

Revenue & EPS history

Hewlett Packard Enterprise · Revenue · Quarterly

$7B

Q3 2023+0.7%vs Q3 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 Q4 fiscal 2023 revenue to be in the range of $7.2 billion to $7.5 billion. HPE estimates GAAP diluted net EPS to be in the range of $0.36 to $0.40 and non-GAAP diluted net EPS to be in the range of $0.48 to $0.52.

Tailwinds

  • Estimates Q4 fiscal 2023 revenue to be in the range of $7.2 billion to $7.5 billion
  • Estimates fiscal 2023 revenue growth to be in the range of 4% to 6% in constant currency
  • Reiterates our 2022 HPE Securities Analyst Meeting ARR guidance of 35% to 45% Compounded Annual Growth Rate from fiscal 2022 to fiscal 2025
  • Estimates Q4 fiscal 2023 GAAP diluted net EPS to be in the range of $0.36 to $0.40 and non-GAAP diluted net EPS to be in the range of $0.48 to $0.52
  • Reiterates fiscal 2023 GAAP diluted net EPS to be in the range of $1.42 to $1.46 and raises non-GAAP diluted net EPS guidance to be in the range of $2.11 to $2.15

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 Q3 2023

Historical avgQ3 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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