Q1 marked by strong profitability and cash flow; raising FY21 EPS and FCF outlook


Q1 2021 Financial Highlights:

  • Revenue: $6.8 billion exceeded Q1 outlook with stronger than normal sequential seasonality

    • Intelligent Edge revenue: $806 million, up 11% from the prior-year period when adjusted for currency
    • Annualized revenue run-rate (ARR): $649 million, up 27% from the prior-year period
    • Core businesses delivered strong profitability and cash flow
  • Diluted net earnings per share (“EPS”):

    • GAAP of $0.17, above the previously provided outlook of $0.02 to $0.06 per share
    • Non-GAAP of $0.52, above the previously provided outlook of $0.40 to $0.44 per share
  • Cash flow from operations of approximately $1.0 billion, up $1.0 billion from the prior-year period
  • Generated record free cash flow of $563 million, up $748 million from the prior-year period

Dividend: declared a regular cash dividend of $0.12 per share, payable on April 7, 2021

Outlook:

  • Fiscal 2021 Second quarter: Estimates GAAP diluted net EPS to be in the range of $0.02 to $0.08 and non-GAAP diluted net EPS to be in the range of $0.38 to $0.44
  • Fiscal 2021: Raises GAAP diluted net EPS outlook to $0.48 to $0.66 and non-GAAP diluted net EPS outlook to $1.70 to $1.88
  • Fiscal 2021 free cash flow1: Raises free cash flow guidance to $1.1 to $1.4 billion

HOUSTON–(BUSINESS WIRE)–Hewlett Packard Enterprise (NYSE: HPE) today announced financial results for the first quarter, ended January 31, 2021.

“We delivered a strong Q1 performance,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “Our revenue exceeded our outlook and we significantly expanded our gross and operating margins to drive strong profitability across most of our businesses. Our non-GAAP EPS exceeded the high-end of our guidance and free cash flow was a record Q1 performance. These results give us confidence to raise our FY21 outlook.”

“The global pandemic has brought a renewed focus on digital transformation as businesses are rethinking everything from remote work and collaboration to business continuity and data insight,“ he continued. “As the world heads to recovery, our customers are looking for the agility and simplicity of the cloud native world with the flexibility and control of a hybrid business model – and this is where we have a unique and differentiated value proposition.”

“Our dedicated, passionate and resilient team members are laser-focused on delivering for our customers and executing our strategy to strengthen our core businesses, double down in areas of growth, and accelerate our pivot to as-a-service to drive long-term sustainable, profitable growth,” said Neri.

First Quarter Fiscal Year 2021 Results

Net revenue of $6.8 billion, down 2% from the prior-year period or 3% when adjusted for currency, marked by stronger than normal sequential seasonality.

Annualized revenue run-rate (ARR) of $649 million, up 27% from the prior-year period. Based on strong customer demand and recent wins, we are reiterating our 2019 Securities Analyst Meeting ARR guidance of 30-40% Compounded Annual Growth Rate from fiscal year 2019 to fiscal year 2022.

GAAP gross margins of 33.5%, up 70 basis points from the prior-year period and Non-GAAP gross margins of 33.7%, up 30 basis points from the prior-year period.

GAAP diluted net earnings per share (“EPS”) was $0.17, compared to $0.25 in the prior-year period and above the previously provided outlook of $0.02 to $0.06 per share.

Non-GAAP diluted net EPS was $0.52, compared to $0.50 in the prior-year period and above the previously provided outlook of $0.40 to $0.44 per share. First quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $456 million and $0.35 per diluted share, respectively, primarily related to transformation costs, stock-based compensation expense and the amortization of intangible assets.

Cash flow from operations of approximately $1.0 billion, up $1.0 billion from the prior-year period.

Free cash flow of $563 million, up $748 million from the prior-year period.

Segment Results

  • Intelligent Edge revenue was $806 million, up 12% year over year or 11% when adjusted for currency, with 18.9% operating profit margin, compared to 12.1% from the prior-year period. Rich software capabilities combined with greater operational productivity helped accelerate revenue and profits. Based on the solid performance, the Company expects to continue to take share in both campus switching and WLAN.
  • High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $762 million, down 9% year over year, with 5.6% operating profit margin, compared to 7.5% from the prior-year period. Despite inherent uneven nature of the business, the Company remains confident in the near-term and longer-term outlook for this business.
  • Compute revenue was $3.0 billion, down 1% year over year or down 2% when adjusted for currency, with 11.5% operating profit margin, compared to 10.7% from the prior-year period.
  • Storage revenue was $1.2 billion, down 5% year over year or down 6% when adjusted for currency, with 19.7% operating profit margin, compared to 20.0% from the prior-year period. Notable strength in software-defined solutions, including Nimble, up 31% from the prior-year period when adjusted for currency and All Flash Array Storage, up 5% from the prior-year period, driven by increased adoption of Primera All Flash.
  • Financial Services revenue was $860 million, flat year over year or down 1% when adjusted for currency, with 9.8% operating profit margin, compared to 8.7% from the prior-year period. Net portfolio assets were up 3% year over year or flat when adjusted for currency. The business delivered return on equity of 16.5%, up 1.3 points from the prior-year period.

Dividend

Board of Directors have declared a regular cash dividend of $0.12 per share on the company’s common stock. This dividend, the second in Hewlett Packard Enterprise’s fiscal year 2021, is payable on April 7, 2021, to stockholders of record as of the close of business on March 10, 2021.

Fiscal 2021 second quarter outlook:

Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.02 to $0.08 and non-GAAP diluted net EPS to be in the range of $0.38 to $0.44. Fiscal 2021 second quarter non-GAAP diluted net EPS estimates exclude after-tax adjustments of approximately $0.36 per diluted share, primarily related to transformation costs, stock-based compensation expense and the amortization of intangible assets.

Fiscal 2021 outlook:

Hewlett Packard Enterprise raises GAAP diluted net EPS outlook to $0.48 to $0.66 from $0.38 to $0.56 and non-GAAP diluted net EPS outlook to $1.70 to $1.88 from $1.60 to $1.78. Fiscal 2021 non-GAAP diluted net EPS estimates exclude after-tax adjustments of approximately $1.22 per diluted share, primarily related to transformation costs, stock-based compensation expense and the amortization of intangible assets.

Raises free cash flow1 guidance range to $1.1 to $1.4 billion from $0.9 to $1.1 billion.

1Hewlett Packard Enterprise provides certain guidance on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results. Refer to the discussion of non-GAAP financial measures below for more information.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise is the global edge-to-cloud platform as-a-service company that helps organizations accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future and innovating to advance the way people live and work, HPE delivers unique, open and intelligent technology solutions, with a consistent experience across all clouds and edges, to help customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com.

Use of non-GAAP financial information

To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a generally accepted accounting principles (GAAP) basis, Hewlett Packard Enterprise provides revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP income tax rate, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net debt, net cash, operating company net debt and operating company net cash financial measures. Hewlett Packard Enterprise also provides forecasts of non-GAAP diluted net earnings per share and free cash flow. A reconciliation of adjustments to GAAP financial measures for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its business, the substance behind Hewlett Packard Enterprise’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Hewlett Packard Enterprise’s management compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, gross profit, gross profit margin, operating profit (earnings from operations), operating profit margin, net earnings, diluted net earnings per share, cash, cash equivalents and restricted cash, cash flow from operations, investments in property, plant and equipment, or total company debt prepared in accordance with GAAP.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries (“Hewlett Packard Enterprise”) may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will”, “should” and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to the scope and duration of the novel coronavirus pandemic (“COVID-19”) and its impact on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results and the world economy; any projections of revenue, margins, expenses, investments, effective tax rates, interest rates, the impact of the U.S. Tax Cuts and Jobs Act of 2017 and related guidance or regulations, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, impairment charges, hedges and derivatives and related offsets, order backlog, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; the projections, execution, timing and results of any transformation or restructuring plans, including estimates and assumptions related to the anticipated benefits, cost savings or charges of implementing the transformation and restructuring plans; any statements of the plans, strategies and objectives of management for future operations, as well as the execution of corporate transactions or contemplated acquisitions, research and development expenditures, and any resulting benefit, cost savings, charges, or revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Hewlett Packard Enterprise and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of Hewlett Packard Enterprise’s products and the delivery of Hewlett Packard Enterprise’s services effectively; the protection of Hewlett Packard Enterprise’s intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent; risks associated with Hewlett Packard Enterprise’s international operations (including pandemics and public health problems, such as the outbreak of COVID-19); the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients and partners, including any impact thereon resulting from events such as the COVID-19 pandemic; the hiring and retention of key employees; the execution, integration and risks associated with business combination and investment transactions; the impact of changes to environmental, global trade, and other governmental regulations; changes in our product, lease, intellectual property or real estate portfolio; the payment or non-payment of a dividend for any period; the efficacy of using non-GAAP, rather than GAAP, financial measures in business projections and planning; the judgments required in connection with determining revenue recognition; impact of company policies and related compliance; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending investigations, claims and disputes; and other risks that are described herein, including but not limited to the risks described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the Hewlett Packard Enterprise Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2021. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)

 

 

Three months ended

 

January 31,
2021

October 31,
2020

January 31,
2020

Net revenue

$

6,833

 

$

7,208

 

$

6,949

 

Costs and expenses:

 

 

 

Cost of sales

4,545

 

5,002

 

4,667

 

Research and development

468

 

484

 

485

 

Selling, general and administrative

1,159

 

1,166

 

1,218

 

Amortization of intangible assets

110

 

80

 

120

 

Transformation costs

311

 

304

 

89

 

Acquisition, disposition and other related charges

18

 

27

 

22

 

Total costs and expenses

6,611

 

7,063

 

6,601

 

Earnings from operations

222

 

145

 

348

 

Interest and other, net

(44

)

(57

)

(19

)

Tax indemnification adjustments

(16

)

(15

)

(21

)

Non-service net periodic benefit credit

17

 

35

 

37

 

Earnings from equity interests

26

 

17

 

33

 

Earnings before taxes

205

 

125

 

378

 

(Provision) benefit from taxes

18

 

32

 

(45

)

Net earnings

$

223

 

$

157

 

$

333

 

Net earnings per share:

 

 

 

Basic

$

0.17

 

$

0.12

 

$

0.26

 

Diluted

$

0.17

 

$

0.12

 

$

0.25

 

Cash dividends declared per share

$

0.12

 

$

0.12

 

$

0.12

 

Weighted-average shares used to compute net earnings per share:

 

 

 

Basic

1,300

 

1,293

 

1,300

 

Diluted

1,315

 

1,306

 

1,315

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
(In millions, except percentages and per share amounts)

 

 

 

 

 

 

 

 

Three months

ended January

31, 2021

Diluted net

earnings

per share

Three months

ended October 31,

2020

Diluted net

earnings

per share

Three months

ended January

31, 2020

Diluted net

earnings

per share

GAAP net earnings

$

223

 

$

0.17

 

$

157

 

$

0.12

 

$

333

 

$

0.25

 

Non-GAAP adjustments:

 

 

 

 

 

 

Amortization of initial direct costs

2

 

 

1

 

 

3

 

 

Amortization of intangible assets

110

 

0.08

 

80

 

0.06

 

120

 

0.09

 

Transformation costs

311

 

0.23

 

304

 

0.23

 

89

 

0.07

 

Stock-based compensation expense(a)

110

 

0.08

 

59

 

0.05

 

93

 

0.07

 

Acquisition, disposition and other related charges

18

 

0.01

 

27

 

0.02

 

42

 

0.03

 

Tax indemnification adjustments

16

 

0.02

 

15

 

0.02

 

21

 

0.02

 

Non-service net periodic benefit credit

(17

)

(0.01

)

(35

)

(0.03

)

(37

)

(0.03

)

Earnings from equity interests(b)

34

 

0.03

 

35

 

0.03

 

37

 

0.03

 

Adjustments for taxes

(128

)

(0.09

)

(106

)

(0.09

)

(44

)

(0.03

)

Non-GAAP net earnings

$

679

 

$

0.52

 

$

537

 

$

0.41

 

$

657

 

$

0.50

 

 

 

 

 

 

 

 

GAAP earnings from operations

$

222

 

 

$

145

 

 

$

348

 

 

Non-GAAP adjustments

 

 

 

 

 

 

Amortization of initial direct costs

2

 

 

1

 

 

3

 

 

Amortization of intangible assets

110

 

 

80

 

 

120

 

 

Transformation costs

311

 

 

304

 

 

89

 

 

Stock-based compensation expense(a)

110

 

 

59

 

 

93

 

 

Acquisition, disposition and other related charges

18

 

 

27

 

 

42

 

 

Non-GAAP earnings from operations

$

773

 

 

$

616

 

 

$

695

 

 

 

 

 

 

 

 

 

GAAP operating profit margin

3.2

%

 

2.0

%

 

5.0

%

 

Non-GAAP adjustments

8.1

%

 

6.5

%

 

5.0

%

 

Non-GAAP operating profit margin

11.3

%

 

8.5

%

 

10.0

%

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
(In millions, except percentages and per share amounts)

 

 

 

 

 

Three months ended

January 31, 2021

Three months ended

October 31, 2020

Three months ended

January 31, 2020

GAAP net revenue

$

6,833

 

 

$

7,208

 

 

$

6,949

 

 

GAAP cost of sales

4,545

 

 

5,002

 

 

4,667

 

 

GAAP gross profit

$

2,288

 

 

$

2,206

 

 

$

2,282

 

 

 

 

 

 

Non-GAAP adjustments

 

 

 

Amortization of initial direct costs

$

2

 

 

$

1

 

 

$

3

 

 

Acquisition, disposition and other related charges(c)

 

 

 

 

20

 

 

Stock-based compensation expense(a)

$

13

 

 

$

7

 

 

$

13

 

 

Non-GAAP gross profit

$

2,303

 

 

$

2,214

 

 

$

2,318

 

 

 

 

 

 

GAAP gross profit margin

33.5

%

30.6

%

32.8

%

Non-GAAP adjustments

0.2

%

0.1

%

0.6

%

Non-GAAP gross profit margin

33.7

%

30.7

%

33.4

%

 

 

 

 

Net cash provided by (used in) operating activities

$

963

 

 

$

747

 

 

$

(79

)

 

Investment in property, plant and equipment

(513

)

 

(604

)

 

(568

)

 

Proceeds from sale of property, plant and equipment

113

 

 

80

 

 

462

 

 

Free cash flow

$

563

 

 

$

223

 

 

$

(185

)

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except par value)

 

 

 

As of

January 31, 2021

October 31, 2020

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

4,165

 

$

4,233

 

Accounts receivable, net of allowances

2,933

 

3,386

 

Financing receivables, net of allowances

3,883

 

3,794

 

Inventory

2,791

 

2,674

 

Assets held for sale

34

 

77

 

Other current assets

2,266

 

2,392

 

Total current assets

16,072

 

16,556

 

Property, plant and equipment

5,573

 

5,625

 

Long-term financing receivables and other assets

10,585

 

10,544

 

Investments in equity interests

2,211

 

2,170

 

Goodwill and intangible assets

19,010

 

19,120

 

Total assets

$

53,451

 

$

54,015

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

Notes payable and short-term borrowings

$

3,727

 

$

3,755

 

Accounts payable

5,196

 

5,383

 

Employee compensation and benefits

1,149

 

1,391

 

Taxes on earnings

119

 

148

 

Deferred revenue

3,440

 

3,430

 

Accrued restructuring

241

 

366

 

Other accrued liabilities

4,059

 

4,265

 

Total current liabilities

17,931

 

18,738

 

Long-term debt

11,963

 

12,186

 

Other non-current liabilities

7,298

 

6,995

 

Stockholders’ equity

 

 

HPE stockholders’ equity:

 

 

Preferred stock, $0.01 par value (300 shares authorized; none issued)

 

 

Common stock, $0.01 par value (9,600 shares authorized; 1,300 and 1,287 shares issued and outstanding at January 31, 2021 and October 31, 2020, respectively)

13

 

13

 

Additional paid-in capital

28,427

 

28,350

 

Accumulated deficit

(8,332

)

(8,375

)

Accumulated other comprehensive loss

(3,896

)

(3,939

)

Total HPE stockholders’ equity

16,212

 

16,049

 

Non-controlling interests

47

 

47

 

Total stockholders’ equity

16,259

 

16,096

 

Total liabilities and stockholders’ equity

$

53,451

 

$

54,015

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)

Three months ended

January 31, 2021

Three months ended

January 31, 2020

Cash flows from operating activities:

 

 

Net earnings

$

223

 

$

333

 

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

 

 

Depreciation and amortization

674

 

690

 

Stock-based compensation expense

113

 

93

 

Provision for doubtful accounts and inventory

52

 

41

 

Restructuring charges

232

 

84

 

Deferred taxes on earnings

(71

)

(28

)

Earnings from equity interests

(26

)

(33

)

Other, net

65

 

(36

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

Accounts receivable

446

 

82

 

Financing receivables

(120

)

(104

)

Inventory

(148

)

(204

)

Accounts payable

(161

)

(250

)

Taxes on earnings

(34

)

(27

)

Restructuring

(220

)

(87

)

Other assets and liabilities

(62

)

(633

)

Net cash provided by (used in) operating activities

963

 

(79

)

Cash flows from investing activities:

 

 

Investment in property, plant and equipment

(513

)

(568

)

Proceeds from sale of property, plant and equipment

113

 

462

 

Purchases of available-for-sale securities and other investments

(7

)

(59

)

Maturities and sales of available-for-sale securities and other investments

1

 

8

 

Financial collateral posted

(266

)

(48

)

Financial collateral received

20

 

147

 

Payments made in connection with business acquisitions, net of cash acquired

 

(6

)

Net cash used in investing activities

(652

)

(64

)

Cash flows from financing activities:

 

 

Short-term borrowings with original maturities less than 90 days, net

26

 

127

 

Proceeds from debt, net of issuance costs

323

 

340

 

Payment of debt

(611

)

(450

)

Net proceeds related to stock-based award activities

(34

)

(43

)

Repurchase of common stock

 

(204

)

Cash dividends paid to non-controlling interests

(8

)

 

Contributions from non-controlling interests

 

1

 

Cash dividends paid

(155

)

(156

)

Net cash used in financing activities

(459

)

(385

)

Increase in cash, cash equivalents and restricted cash

(148

)

(528

)

Cash, cash equivalents and restricted cash at beginning of period

4,621

 

4,076

 

Cash, cash equivalents and restricted cash at end of period

$

4,473

 

$

3,548

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)

 

 

 

Three months ended

 

January 31,
2021

October 31,
2020

January 31,
2020

Net revenue:(d)

 

 

 

Compute

$

2,986

 

$

3,191

 

$

3,030

 

HPC & MCS

762

 

992

 

839

 

Storage

1,193

 

1,215

 

1,252

 

Intelligent Edge

806

 

786

 

720

 

Financial Services

860

 

849

 

859

 

Corporate Investments and Other

321

 

340

 

327

 

Total segment net revenue

6,928

 

7,373

 

7,027

 

Elimination of intersegment net revenue

(95

)

(165

)

(78

)

Total Hewlett Packard Enterprise consolidated net revenue

$

6,833

 

$

7,208

 

$

6,949

 

 

 

 

 

Earnings before taxes:(a)(d)

 

 

 

Compute

$

342

 

$

210

 

$

324

 

HPC & MCS

43

 

129

 

63

 

Storage

235

 

221

 

251

 

Intelligent Edge

152

 

97

 

87

 

Financial Services

84

 

66

 

75

 

Corporate Investments and Other

(31

)

(34

)

(53

)

Total segment earnings from operations

825

 

689

 

747

 

 

 

 

 

Unallocated corporate costs and eliminations

(52

)

(73

)

(52

)

Stock-based compensation expense(a)

(110

)

(59

)

(93

)

Amortization of initial direct costs

(2

)

(1

)

(3

)

Amortization of intangible assets

(110

)

(80

)

(120

)

Transformation costs

(311

)

(304

)

(89

)

Acquisition, disposition and other related charges

(18

)

(27

)

(42

)

Interest and other, net

(44

)

(57

)

(19

)

Tax indemnification adjustments

(16

)

(15

)

(21

)

Non-service net periodic benefit credit

17

 

35

 

37

 

Earnings from equity interests

26

 

17

 

33

 

Total Hewlett Packard Enterprise consolidated earnings before taxes

$

205

 

$

125

 

$

378

 

Contacts

Editorial contact

Stefanie Notaney, HPE
stefanie.notaney@hpe.com

Investor contact

Andrew Simanek
investor.relations@hpe.com

Read full story here

The post HPE Reports Fiscal 2021 First Quarter Results appeared first on Web Hosting | Cloud Computing | Datacenter | Domain News.



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