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%.

Unisys encourages financial institutions to adopt open banking
“It establishes the bank as an integral part of the customers’ life – a ‘one-stop-shop’ where they can get personalised products and services they want, when they want them.”
Developers use Intel AI to solve some of the world’s biggest challenges
Risab Biswas developed a computer vision application to help farmers more easily detect pathological disease in their plants.
Smarter cities through cross-border and G2G collaborations
"As countries race ahead in their bid to accelerate smart city development through industrialisation, the environment and ultimately humanity is paying the price for this phenomenon."
SingularityNET CEO discusses the future of AI
"In my view, AI will eliminate essentially all need for humans to do practical work."
You're invited: Adobe Symposium 2019, Sydney
The event will bring together 4000 business leaders, marketers, IT and digital experts, as well as creative professionals to Sydney’s International Convention Centre in the heart of the city.
Toshiba launches fast rotary cutter for B-EX6T1 printer
Intended primarily for industrial applications, these popular printers combine state-of-the-art technology with usability, reliability and low TCO.
How the 5G Telco market is transforming
"Over the past six months, more people in the general populace have begun using the term 5G in their regular conversations."
Innodisk launces AIoT solution for the medical field
One of the challenges of AIoT is keeping tabs on the many devices involved in the system.