Hewlett Packard Enterprise Co (NYSE:HPE) reported upbeat earnings for its first quarter and raised FY19 earnings guidance. However, the company’s sales missed estimates.
Revenue came in at $7.6 billion, in line with guidance
Operating profit (GAAP) proved to be $456 million, double that of the prior-year period, while non-GAAP operating profit was $669 million, up 19% from the prior-year period driven by improved gross margins and cost reductions from HPE Next
Earnings per share (GAAP) registered at $0.13, down 86% from the prior-year period EPS from continuing operations due primarily to one-time, non-cash adjustments related to U.S. tax reform. Non-GAAP $0.42, up 31% from the prior-year period and above the previously provided outlook of $0.33 to $0.37 per share
Cash flow from operations came in at $382 million, up 169% from $142 million in the prior-year period. Free cash flow showed a loss of $190 million, up $222 million from the prior-year period.
Said CEO Antonio Neri, "We significantly expanded both gross and operating margins and drove 31% growth in non-GAAP earnings per share. Looking forward, we are confident that HPE’s differentiated, software-defined solutions will continue to gain traction with customers looking to harness the explosion of data, driving accelerated revenue growth starting in Q2."
Shares in HPE gained 19 cents, or 1.2%, to $16.42.
