HPE has recently shared that continuing its growth momentum, it has posted a $6.7 billion revenue during its FY22 Q2 last night and here are the key highlights of the company’s growth:
Q2 2022 Financial Highlights:
• Orders: Strong customer demand drives order growth up 20% from the prior-year period, the fourth consecutive quarter of 20% or better order growth
• As-a-Service orders increased 107% from the prior-year period, the 3rd consecutive quarter of doubling • Revenue: $6.7 billion, up 0.2% and 1.5% adjusted for currency from the prior-year period and in line with Q2 outlook
• Gross margins remain strong despite ongoing supply chain constraints and inflationary environment • GAAP of 32.4%, down 170 basis points from the prior-year period primarily due to $105 million of Russia related charges
• Non-GAAP of 34.2%, down 10 basis points from the prior-year period
• Diluted net earnings per share (“EPS”):
• GAAP of $0.19, flat from the prior-year period primarily due to $126 million of Russia-related charges • Non-GAAP of $0.44, down 4% from the prior-year period due to impact from Russia-related operations and currency
• Cash flow from operations of $379 million and free cash flow of ($211) million, in line with normal seasonality
Capital Returns:
• Returned $214 million to shareholders in the form of dividends and share repurchases • Declared a regular cash dividend of $0.12 per share, payable on July 8, 2022
Outlook:
• Reiterates fiscal 2022 revenue growth of 3%-4% adjusted for currency
• Third quarter fiscal 2022: Estimates GAAP diluted net EPS to be in the range of $0.22 to $0.32 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.54
• Fiscal 2022: Updates GAAP diluted net EPS to be in the range of $1.17 to $1.31 and non-GAAP diluted net EPS back to the original outlook of $1.96 to $2.10 provided at the HPE October 2021 Securities Analyst Meeting reflecting unfavorable currency movements and Russia exit
• Fiscal 2022 free cash flow: Reiterates free cash flow guidance to be in the range of $1.8 to $2.0 billion
“Persistent demand led to another quarter of significant order growth and higher revenue for HPE, underscoring the accelerating interest customers have in our unique edge-to-cloud portfolio and our HPE GreenLake platform,” said Antonio Neri, president, and CEO of Hewlett Packard Enterprise. “I am optimistic that demand will continue to be strong, given our customers’ needs to accelerate their business resilience and competitiveness. We remain focused on innovating for our customers and on executing with discipline so that we translate that demand into profitable growth for HPE.”
“We are particularly pleased with the resiliency of our gross margins despite the inflationary environment and ongoing supply chain disruptions,” said Tarek Robbiati, EVP and CFO of Hewlett Packard Enterprise. “With record levels of high-quality backlog, we are well positioned for growth in FY22 and beyond, and confident in realizing the financial commitments we set at our Securities Analyst Meeting last October.”
