Hewlett Packard Enterprise Co (HPE) beats the consensus on its earnings call after reporting higher-than-expected record sales.
On Tuesday’s closing bell, HPE’s stock price plunged by 0.58% to $15.46 apiece but was expected to rise by 2.13% to $15.79 per share on Wednesday’s trading session.
For the latest quarter, the tech giant’s earnings per share met analysts’ expectations of $0.57 but surpassed $0.48 in Q3.
Meanwhile, fourth-quarter revenue increased to $7.90 billion, exceeding the $7.40 billion analysts’ consensus. In the third quarter, HPE reported earnings of $6.95 billion.
Another highlight for the period that ended in October was the 18.00% to $965.00 million surge in intelligent edge sales.
Furthermore, HPE storage sales soared 4.00% to $1.30 billion, with a 15.90% operating margin against 13.80% from a year before.
Consequently, its computer sales were up by 16.00% to $3.70 billion, with an operating profit margin of 14.70% from 9.40% a year ago.
In general, the tech giant’s operating margin grew by 11.5%.
For the current fiscal year, its sales were up by 3.00% to $28.49 billion from $27.78 billion a year prior.
At the same time, non-GAAP earnings soared by 3.00% to $2.02 from the previous year.
On the other hand, the fourth-quarter net loss was only $304.00 million, or 23.00 cents a share. This net loss was below the $409.00 million, or 31 cents apiece from a year before.
GreenLake delivers Record Booking for HPE
One of the major factors that drove HPE’s Q4 revenue was the successful results of its Greenlake cloud service.
According to its CEO Antonio Neri, HPE Greenlake has received more partner bookings than ever before.
In the latest fiscal year, the tech firm had twice as many new Greenlake logo customers compared to a year prior.
When measured, GreenLake adoption soared by 17.00% to $936.00 million despite the limited installations due to supply constraints.
Moving forward, HPE expects an improvement in the supply environment, which would further boost the growth.
For the fiscal year 2022 to 2025, the tech adjusted its 35.00% estimate to 45.00%.
