Hewlett Packard (HPE, $16.43) beats fiscal Q1 earnings expectations

Hewlett Packard Enterprise posted its first-quarter fiscal 2022 non-GAAP earnings of 53 cents per share, exceeding the Zacks Consensus Estimate by 15.2%. The figure is also higher than the company’s guidance of  42-50 cents. The year-ago quarter’s earnings were  52 cents per share.

Revenues rose +2% from the year-ago quarter to  $7 billion, shy the consensus expectation of $7.02 billion. Annualized revenue run-rate (“ARR”) was up 23% year over year to $798 million.

The company’s revenue from its High Performance Compute & Artificial Intelligence segment rose+ 4% year over year to $790 million.

The Compute division’s sales increased 1% year on year to $3 billion, while revenues in the Intelligent Edge business climbed +11% to $901 million.

Financial Service revenues fell -2% year over year to $842 million.  Revenues from the Storage business were down -3% year over year to $1.2 billion.

Corporate Investments & Other revenues rose +1% year over year.

Non-GAAP gross margin expanded 20 bps on a year-over-year basis to 33.9%, on the back of  The strong pricing discipline, a positive mix shift toward high-margin software-rich businesses, cost takeouts and automation.

The company boosted its outlook for fiscal 2022 non-GAAP earnings to the range of $2.03-$2.17 per share, compared with prior forecast of $1.96-$2.10 per share.

It still expects free cash flow in the range of $1.8 billion to $2 billion.

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