Stock News in Focus: Hewlett Packard Enterprise Company (NYSE: HPE)

On 27 March 2020, Hewlett Packard Enterprise Company (NYSE: HPE) stock identified change of 32.17% away from 52-week low price and recently located move of -44.17% off 52-week high price. It has market worth of $13566.23M and dividend yield of 4.89%. HPE stock has been recorded -23.44% away from 50 day moving average and -32.41% away from 200 day moving average. Moving closer, we can see that shares have been trading -4.71% off 20-day moving average.

Hewlett Packard Enterprise (HPE) recently reported financial results for its fiscal 2020 first quarter, ended Jan. 31, 2020.

First Quarter Fiscal Year 2020 Results

Net revenue of $6.9B, down 8% from the prior-year period and 7% from the prior-year period when adjusted for currency. Market uncertainty, supply constraints, and North America manufacturing capacity constraints influenced revenue in Q1, particularly in Compute.

Annualized revenue run-rate (ARR) of $511M, up 19% from the prior-year period. GreenLake services orders finished the quarter with 48% year over year growth.

GAAP gross margin of 32.8%, up 170 basis points from the prior-year period and Non-GAAP gross margin of 33.2%, up 210 basis points from the prior-year period.

GAAP diluted net earnings per share (“EPS”) was $0.25, contrast to $0.13 in the prior-year period and above the before provided outlook of $0.20 to $0.24 per share.

Non-GAAP diluted net EPS was $0.44, contrast to $0.42 in the prior-year period and in-line with the before provided outlook of $0.42 to $0.46 per share. First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $242M and $0.19 per diluted share, respectively, primarily related to amortization of intangible assets and transformation costs.

Cash flow from operations of ($79M) contrast to $382M in the prior-year period.

Free cash flow of ($185M) contrast to ($190M) in the prior-year period.

Section Results

Hewlett Packard Enterprise brings a broad, differentiated portfolio of products and services to address digital transformation, while prioritizing key sections to drive profitable growth.

Intelligent Edge returned to growth with revenue of $720M, up 4% year over year when adjusted for currency, with 9.7% operating margin, up 630 basis points from the prior-year period. Enhancements to North America sales leadership and go-to-market sectionation are paying off with double-digit growth in North America and 13% growth when adjusted for currency in overall WLAN product.

Compute revenue was $3.0B, down 15% year over year when adjusted for currency, with 9.5% operating margin, flat from the prior-year period. Revenue was pressured this quarter Because of a more uneven business environment, component supply constraints and North America manufacturing capacity constraints.

High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $823M, up 6% year over year when adjusted for currency, with 6.0% operating margin, down 660 basis points from the prior-year period. HPC business continues to gain momentum with over $2.0B of awarded business predictable to be delivered by FY23.

Storage revenue was $1.3B, down 7% year over year when adjusted for currency, with 18.1% operating margin, down 60 basis points from the prior-year period. Hyperconverged Infrastructure showing continued momentum, up 6% year over year when adjusted for currency and Big Data, up 45% year over year when adjusted for currency.

Advisory & Professional Services (A&PS) revenue was $243M, flat year over year when adjusted for currency, with (0.8%) operating margin, up 12.5 points from the prior-year period. A&PS is a planned business that pulls through important infrastructure and operational services sales.

Financial Services revenue was $859M, down 6% year over year when adjusted for currency, with 8.5% operating margin, up 10 basis points from the prior-year period. Net portfolio assets were up 2% year over year when adjusted for currency, and financing volume was up 2% year over year when adjusted for currency. The business delivered return on equity of 14.8%, down 90 basis points from the prior-year period.

The Technology sector company, Hewlett Packard Enterprise Company noticed change of -6.74% to $9.82 along volume of 12548967 shares in recent session compared to an average volume of 11458.4K. HPE’s shares are at -38.47% for the quarter and driving a -35.65% return over the course of the past year and is now at -38.08% since this point in 2018.

James Emmons

James Emmons – Technology and Energy I am James Emmons I have completed my bachelor’s degree in Information Technology and a master’s degree in Business. I love to write about technology. I had three years of writing experience which include articles, web content, and blogs. I always love to play with work, in both my career and education.  I also had teaching experience of 5 years at the renowned university to teach business and technical writing and currently working as an instructor and training writer and designer. I am incredibly social, and I love to travel and explore the world.

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