HPE Exceeds Q2 Estimates with EPS $0.42, Raises FY24 Guidance on Strong AI Server Sales, Up 3% YoY

Jun 4, 2024, 08:12 PM

Hewlett Packard Enterprise (HPE) reported strong financial results for Q2 2024, exceeding analysts' expectations. The company posted adjusted earnings per share (EPS) of $0.42, surpassing the estimated $0.39. Revenue for the quarter reached $7.2 billion, up 3% year-over-year and higher than the anticipated $6.82 billion. HPE also raised its guidance for the fiscal year, projecting adjusted EPS between $1.85 and $1.95, up from the previous range of $1.82 to $1.92. The company attributed its performance to a significant increase in AI systems revenue, which more than doubled from the prior quarter. CEO Antonio Neri stated, "AI systems revenue more than doubled from the prior quarter, driven by our strong order book and better conversion from our supply chain." For Q3 2024, HPE expects adjusted EPS between $0.43 and $0.48 and revenue between $7.4 billion and $7.8 billion. The company still sees fiscal year free cash flow of at least $1.9 billion. The stock initially rose by 11% following the earnings announcement.