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.