Hewlett Packard Enterprise misses by $0.01, reports revs in-line; guides Q2 EPS and revs below consensus; guides FY25 EPS in-line; Court date for DOJ/Juniper case is July 9 (17.94 -0.95)
- Reports Q1 (Jan) earnings of $0.49 per share, excluding non-recurring items, $0.01 worse than the FactSet Consensus of $0.50; revenues rose 16.3% year/year to $7.85 bln vs the $7.81 bln FactSet Consensus.
- Server revenue was $4.3 bln, up 29% from the prior-year period in actual dollars and up 30% CC, with 8.1% operating profit margin, compared to 11.4% from the prior-year period.
- Intelligent Edge revenue was $1.1 bln, down 5% from the prior-year period in actual dollars and 4% in CC, with 27.4% operating profit margin, compared to 29.4% in the prior-year period.
- Hybrid Cloud revenue was $1.4 bln, up 10% from the prior-year period in actual dollars and +11% CC, with 7.0% operating profit margin, compared to 4.0% from the prior-year period.
- Financial Services revenue was $873 mln, flat from the prior-year period in actual dollars and +1.6% CC, with 9.4% operating profit margin, compared to 8.5% from the prior-year period.
- Co issues downside guidance for Q2 (Apr), sees EPS of $0.28-0.34, excluding non-recurring items, vs. $0.50 FactSet Consensus; sees Q2 revs of $7.20-7.60 bln vs. $7.92 bln FactSet Consensus.
- Co issues in-line guidance for FY25, sees EPS of $1.70-1.90 vs. $2.13 FactSet Consensus. Co guides to FY25 revenue growth of +7-11% CC, which is not comparable to consensus.
- Update on pending Juniper Networks (JNPR) Acquisition: On Jan 30, as previously reported, the US Dept of Justice filed a complaint seeking to block the proposed merger of HPE and Juniper. On Feb 10, HPE and Juniper filed answers to the complaint disputing those claims. The court set a trial commencement date of July 9, 2025. HPE intends to vigorously defend against the Department of Justice's overreaching interpretation of antitrust laws and will demonstrate how the transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market by enhancing competition, and strengthen the backbone of U.S. networking infrastructure.