[ACCESSWIRE]
Upcoming AWS Coverage on Dell Technologies Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 1, 2016 / Active Wall St. announces its post-earnings coverage on Hewlett Packard Enterprise Co. (NYSE: HPE). The company posted its fourth quarter and fiscal 2016 financial results on November 21, 2016. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Hewlett Packard Enterprise's competitors within the Diversified Computer Systems space, Dell Technologies Inc. (NYSE: DVMT), will conduct a conference call Thursday, December 8, 2016, at 7 a.m. CST to discuss its Fiscal 2017 Q3 financial results. AWS will be initiating a research report on Dell Technologies in the coming days.
Today, AWS is promoting its earnings coverage on HPE; touching on DVMT. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=HPE
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Earnings Reviewed
Earnings Numbers
For Q4 FY16 and FY16 ended on October 31, 2016. Hewlett Packard reported net revenue of $12.5 billion, down 7% from the prior year's same period, and down 2% when adjusted for divestitures and currency. Results missed analysts' estimates for revenue of $12.86 billion. The company's FY16 net revenue of $50.1 billion was down 4% from the prior year's comparable period, while it was up 2% when adjusted for divestitures and currency.
For Q4 FY16, Hewlett Packard's GAAP diluted net earnings per share (EPS) were $0.18, down from $0.75 in the prior year's same period, and below its previously provided outlook of $0.44 to $0.49 per share. The company's Q4 FY16 non-GAAP diluted net EPS was $0.61, up from adjusted non-GAAP diluted net EPS of $0.52 in the prior year's comparable period, and within its previously provided outlook range of $0.58 to $0.63. The company's non-GAAP diluted net EPS matched analysts' expectations of $0.61 per share.
Hewlett Packard stated that Q4 FY16 non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax costs of $733 million and $0.43 per diluted share, respectively, related to tax settlements, restructuring charges, tax indemnification adjustments, separation costs, gains on the divestitures of H3C and MphasiS, amortization of intangible assets, acquisition and other related charges, and an adjustment to loss from equity interests.
For FY16, Hewlett Packard posted GAAP diluted net EPS of $1.82, up from $1.34 in the prior year's same period. The company's FY16 non-GAAP diluted net EPS was $1.92, up from adjusted non-GAAP diluted net EPS of $1.84 in the prior year's same period.
"FY16 was a historic year for Hewlett Packard Enterprise," said Meg Whitman, President and CEO of Hewlett Packard Enterprise, "During our first year as a standalone company, HPE delivered the business performance we promised, fulfilled our commitment to introduce groundbreaking innovation, and began to transform the company through strategic changes designed to enable even better financial performance."
Segment Results
During Q4 FY16, Hewlett Packard generated revenue from the Enterprise Group of $6.7 billion, down 9% on a y-o-y basis, with a 13.2% operating margin. The segment servers' revenue declined 7% compared to Q4 FY15. Storage revenue was down 5%, down 3% when adjusted for divestitures and currency. The company's networking revenue slumped 34% on a y-o-y basis but was flat when adjusted for divestitures and currency. Revenue from Hewlett Packard's Technology Services segment fell 4% on a y-o-y basis, up 2% when adjusted for divestitures and currency.
For Q4 FY16, Hewlett Packard's Enterprise Services segment generated revenue of $4.7 billion, down 6% year-over-year, down 2% when adjusted for divestitures and currency, with a 10.7% operating margin. Infrastructure Technology Outsourcing's revenue was down 7%, down 5% when adjusted for divestitures and currency; and Application and Business Services' revenue was down 3%, up 4% when adjusted for divestitures and currency.
During the reported quarter, the company's Software revenue was $903 million, down 6% on a y-o-y basis, with a 32.1% operating margin. License revenue was down 5%, down 1% when adjusted for divestitures and currency. Hewlett Packard's support revenue declined 7% from the year ago same period, up 1% when adjusted for divestitures and currency. The company's software-as-a-service (SaaS) revenue dropped 1%, while it grew 11% when adjusted for divestitures and currency.
For Q4 FY16, Hewlett Packard's Financial Services division registered revenue growth of 2% on a y-o-y basis to $814 million. The segment's net portfolio assets were up 4%, and financing volume was down 4%. The business delivered an operating margin of 10.2%.
Dividend
In a separate press release on November 10th, 2016, Hewlett Packard announced that the Hewlett Packard Enterprise's board of directors has declared a regular cash dividend of $0.065 per share on the company's common stock. This is an increase of $0.01 per share from the prior dividend. This dividend, the first in Hewlett Packard Enterprise's FY17, is payable on or about January 04th, 2017, to stockholders of record as of the close of business on December 14th, 2016.
Outlook
For Q1 FY17, Hewlett Packard estimates GAAP diluted net EPS to be in the range of $0.03 to $0.07 and non-GAAP diluted net EPS to be in the range of $0.42 to $0.46. For FY17, the company is expecting GAAP diluted net EPS to be in the range of $0.72 to $0.82 and non-GAAP diluted net EPS to be in the range of $2.00 to $2.10.
Stock Performance
On Wednesday, the stock closed the trading session at $23.80, marginally up by 0.25% from its previous closing price of $23.74. A total volume of 14.47 million shares have exchanged hands, which was higher than the 3-month average volume of 12.08 million shares. Hewlett Packard Enterprise's stock price advanced 5.92% in the last month, 11.07% in the past three months, and 29.35% in the previous six months. Furthermore, since the start of the year, shares of the company have skyrocketed 57.99%. The stock is trading at a PE ratio of 9.93 and has a dividend yield of 1.09%.
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