Hewlett Packard Enterprise (HPE) Tops Q4 EPS by 3c, Revenues Beat; Raises FY21 EPS Guidance Above Consensus, Offers 1Q EPS Outlook Above Consensus

Hewlett Packard Enterprise (NYSE: HPE) reported Q4 EPS of $0.37, $0.03 better than the analyst estimate of $0.34. Revenue for the quarter came in at $7.2 billion versus the consensus estimate of $6.89 billion.

Q4 2020 Financial Highlights:

• Revenue: returned to pre-pandemic levels of $7.2 billion, up 6% from the prior quarter and flat from the prior-year period
• Significant acceleration in growth businesses and strong as-a-service momentum
  • HPC & MCS revenue: $975 million, up 50% from the prior quarter and 25% from the prior-year period
  • Intelligent Edge revenue: $786 million, up 15% from the prior quarter and 6% from the prior-year period
  • Annualized revenue run-rate (ARR): $585 million, up 11% from the prior quarter and 30% from the prior-year period
• Diluted net earnings per share:
  • GAAP of $0.12, above the previously provided outlook of $0.02 to $0.06 per share
  • Non-GAAP of $0.37, above the previously provided outlook of $0.32 to $0.36 per share
• Dividend: declared a regular cash dividend of $0.12 per share, payable on January 6, 2021

GUIDANCE:

Hewlett Packard Enterprise sees Q1 2021 EPS of $0.40-$0.44, versus the consensus of $0.35.

Hewlett Packard Enterprise sees FY2021 EPS of $1.60-$1.78, versus the consensus of $1.32.

Fiscal 2021 first quarter outlook:

Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.02 to $0.06 and non-GAAP diluted net EPS to be in the range of $0.40 to $0.44. Fiscal 2021 first quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.38 per diluted share, primarily related to transformation costs, stock-based compensation and the amortization of intangible assets.

Fiscal 2021 outlook:

Hewlett Packard Enterprise raises GAAP diluted net earnings per share outlook to $0.38 to $0.56 from $0.34 to $0.54 and non-GAAP diluted net earnings per share outlook to $1.60 to $1.78 from $1.56 to $1.76. Fiscal 2021 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $1.22 per diluted share, primarily related to transformation costs, stock-based compensation and the amortization of intangible assets.

Reiterates free cash flow1 guidance range of $0.9 to $1.1 billion.

For earnings history and earnings-related data on Hewlett Packard Enterprise (HPE) click here.

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