Story image

HPE announces financial results for the fourth quarter of 2018

05 Dec 2018

Hewlett Packard Enterprise announced financial results for its fiscal 2018 and the fourth quarter, ended October 31, 2018.

Fourth Quarter Fiscal Year 2018 Results 

Fourth quarter net revenue of $7.9 billion was up 4% from the prior-year period and up 3% when adjusted for currency.

Fourth quarter GAAP diluted net earnings per share (“EPS”) from continuing operations was ($0.53), down from GAAP diluted net EPS from continuing operations of $0.23 in the prior-year period.

Fourth quarter non-GAAP diluted net EPS from continuing operations was $0.45, up from non-GAAP diluted net EPS from continuing operations of $0.29 in the prior-year period. 

Fourth quarter non-GAAP net earnings from continuing operations and non-GAAP diluted net EPS from continuing operations exclude after-tax adjustments of $1.4 billion and $0.98 per diluted share.

Fiscal 2018 Full-Year Results

Fiscal 2018 net revenue of $30.9 billion was up 7% from the prior-year period and up 5% when adjusted for currency.

Fiscal 2018 GAAP diluted net EPS from continuing operations was $1.30, up from GAAP diluted net EPS from continuing operations of $0.26 in the prior-year period.

Fiscal 2018 non-GAAP diluted net EPS from continuing operations was $1.56, up from non-GAAP diluted net EPS from continuing operations of $0.96 in the prior year. 

Fiscal 2018 non-GAAP net earnings from continuing operations and non-GAAP diluted net EPS from continuing operations exclude after-tax adjustments of $406 million and $0.26 per diluted share, respectively, primarily related to the impact of U.S. tax reform, transformation costs, amortization of intangible assets, an adjustment to earnings from equity interests.

Fiscal 2018 adjusted non-GAAP diluted net EPS of $1.45 excludes $0.08 for certain non-service pension costs/(benefits), and $0.03 for changes in non-GAAP effective tax rate.

“Hewlett Packard Enterprise delivered another impressive quarter in Q4, concluding a very successful fiscal year 2018 marked by significant transformation and achievement,” said Antonio Neri, President and CEO of HPE. 

“We excelled in delivering differentiated new capabilities for our customers that drove meaningful top line growth while expanding margins that fueled strong cash flow and shareholder returns.”

“As we close my first fiscal year as CEO, I am incredibly proud of where we stand in the marketplace and of our innovative culture. In 2019, I have great confidence that our experienced global team and proven strategy will accelerate what comes next for our customers from edge to cloud.”

Fourth Quarter Fiscal Year 2018 Segment Results

1. Intelligent Edge revenue was $814 million, up 17% year over year and up 15% when adjusted for currency, with 10.1% operating margin. HPE Aruba Product revenue was up 17%, up 15% when adjusted for currency, and HPE Aruba Services revenue was up 16%, up 16% when adjusted for currency. 

2. Hybrid IT revenue was $6.4 billion, up 5% year over year and up 4% when adjusted for currency, with 11.9% operating margin. Compute revenue was up 9%, up 7% when adjusted for currency, Storage revenue was up 6%, up 4% when adjusted for currency, DC Networking revenue was up 2%, down 1% when adjusted for currency, and HPE Pointnext revenue was down 3%, down 3% when adjusted for currency.    3. Financial Services revenue was $939 million, down 7% year over year and down 5% when adjusted for currency, net portfolio assets were flat year over year, and financing volume was up 8% year over year. The business delivered an operating margin of 7.8%.

Lenovo outlines new range of Legion mobile gaming devices
The newest offerings include the latest Intel processors and NVIDIA GPUs to support modern gaming needs.
IDC: Manufacturing driving digital transformation spending in 2019
IDC forecasts global DX spending to reach US$1.18 trillion in 2019, an increase of 17.9% over 2018.
Intel announces “most powerful mobile processors ever”
Improvements in performance, responsiveness and Wi-Fi connectivity will be rolling out for gamers and creators alike.
Application virtualisation market to reach $5bn by 2024
According to a report by KBV Research, cost-saving and productivity benefits will drive the market over the next 5 years.
Slack's 2019 feature roadmap unveiled
Including shared channels across organisations, workflow automation, greater email and calendar integration, and streamlined search.
Data#3 wins learning and development award two years running
Chief Learning Officer magazine’s LearningElite programme honours the best organisations for learning and development.
emt Distribution adds risk intelligence vendor
Flashpoint has signed emt Distribution to provide channel partners in Oceania and South East Asia a solution for illicit threat actor communities.
Intel releases 8th gen vPro mobile processors
This generation promises longer battery life, better performance, and comes with a built-in hardware security solution, Intel Hardware Shield.