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HPE reports steady revenue growth with its fiscal 3rd quarter results

06 Sep 2017

Hewlett Packard Enterprise today announced financial results for its fiscal 2017 third quarter, ended July 31, 2017.

Third quarter net revenue of $8.2 billion (USD) is up 3% from the prior-year period and up 6% when adjusted for divestitures and currency.

The results indicate a better performance than was perhaps expected, with the software merger with Micro Focus also affecting its future financial outlook.

The company released results as corresponding with Generally Accepted Accounting Principles (GAAP) as well as its own non-GAAP measurements.

GAAP diluted net earnings per share (“EPS”) from continuing operations is down $0.15 from the previous year, while non-GAAP diluted net EPS from continuing operations is down $0.31.

Meg Whitman, HPE CEO says, “The results of the third quarter are an encouraging sign of the progress we are making.” “With better execution, we drove overall revenue growth, exceeded our EPS targets and improved our operating margins sequentially, all while completing the spin-merge of our Software business,” she says.

“There’s more work to do, but we are on the right track.”

HPE’s enterprise group segment revenue is $6.8 billion, up 3% year over year, and up 3% when adjusted for currency, with a 9.3% operating margin.

Other notable growth areas included storage revenue, which is up 11%, networking revenue, which is up 16% and financial services revenue, which is up 10% year over year at $897 million.

Software revenue is $718 million, which is down 3% year over year.

In terms of the fiscal 2017 fourth quarter, HPE estimates GAAP diluted net EPS to be in the range of $0.00 to $0.04 and non-GAAP diluted net EPS to be in the range of $0.26 to $0.30.

HPE is also adjusting its fiscal 2017 full year outlook in connection with the close of its software merger with Micro Focus, which the company says will impact its diluted net EPS by approximately $0.13.

For fiscal 2017, Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of ($0.11) to ($0.07) and non-GAAP diluted net EPS to be in the range of $1.36 to $1.40.

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