Hewlett Packard Enterprise (NYSE: HPE) has announced its financial results for the fourth quarter ending October 31, 2024, showcasing robust year-over-year growth in several key financial metrics, with some revenues setting records.
Key Financial Metrics
| Metric | Q4 2024 | YoY Change | Previous Guidance |
|---|---|---|---|
| Total Revenue | $8.5 billion | Up 15% | - |
| GAAP EPS | $0.99 | Up 102% | $0.76 to $0.81 |
| Non-GAAP EPS | $0.58 | Up 12% | $0.52 to $0.57 |
| Free Cash Flow | $1.5 billion | Down $821 million | - |
The total revenue for the quarter stood at $8.5 billion, marking a significant 15% increase from the previous year, surpassing earlier guidance. This growth indicates strong performance driven by various business strategies. GAAP EPS surged significantly by 102% year-over-year, indicating substantial profitability improvements, with Non-GAAP EPS also exceeding guidance.
Segment Revenue Performance
| Segment | Revenue (Q4 2024) | YoY Change | Operating Profit Margin |
|---|---|---|---|
| Server | $4.7 billion | Up 32% | 11.6% |
| Intelligent Edge | $1.1 billion | Down 20% | 24.4% |
| Hybrid Cloud | $1.6 billion | Up 18% | 7.7% |
| Financial Services | $893 million | Up 2% | 9.2% |
The Server segment led the growth with a 32% revenue increase, contributing prominently to the company’s overall success. Meanwhile, Intelligent Edge experienced a 20% decline, facing challenges in the market. Hybrid Cloud and Financial Services showcased moderate growth with improved profitability margins.
Key Developments and Operational Highlights
- Pending Acquisition : Approval received from major jurisdictions for the acquisition of Juniper Networks, aiming for early 2025 closure.
- Dividend Declaration : A regular cash dividend of $0.13 per share, payable January 16, 2025.
- Free Cash Flow : Though FCF decreased, strategic investments and operational management remain priorities.
Commentary from Company Officers
CEO Antonio Neri highlighted the quarter as 'exceptional,' attributing HPE’s success to its vibrant hybrid cloud, AI, and networking portfolio. CFO Marie Myers underscored disciplined execution and forecasting enhancements that helped surpass full-year commitments.
Forward Guidance
HPE projects revenue growth in the mid-teens for Q1 FY 2025 and provides GAAP EPS guidance ranging from $0.31 to $0.36, signaling a positive outlook. The company continues to explore opportunities to optimize its portfolio, focusing on strategic acquisitions and innovation.
This earnings report reflects Hewlett Packard Enterprise's strategic advancements and aggressive pursuit of market leadership across its diversified portfolio. As the company navigates through acquisitions and evolving market dynamics, its robust financial health and strategic positioning appear poised to deliver sustained shareholder value.
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