Hewlett Packard Enterprise releases 10-Q report

By Bobby Samwell • Friday, September 06 07:58 • Permanent Link

Hewlett Packard Enterprise Company has recently released its 10-Q report, providing an in-depth look at its financial condition and results of operations. The company operates in six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. It offers a wide range of products and services, including servers, storage products, networking solutions, and financial and asset management services.

In the 10-Q report, Hewlett Packard Enterprise discusses various trends and uncertainties that have impacted its operations. These include the growing demand for AI, hybrid cloud, and edge computing solutions, as well as the impact of supply chain constraints and macroeconomic uncertainty on customer spending. The company also addresses the challenges posed by foreign currency exposure and recent tax developments, including proposed changes to global tax principles.

The report provides a detailed overview of the company's financial results for the three and nine months ended July 31, 2024. It highlights a 10.1% increase in net revenue for the three-month period, primarily driven by higher average unit prices in the Server segment. However, the gross profit margin decreased by 4.2 percentage points due to a decline in revenue in the Intelligent Edge and Hybrid Cloud segments. For the nine-month period, net revenue decreased by 0.5%, attributed to lower volume and product mix effect in the Intelligent Edge segment.

Additionally, the report presents non-GAAP financial results, including a 10.4% increase in net revenue in constant currency for the three-month period. However, non-GAAP net earnings decreased by 13.6% for the nine-month period. The company also reported free cash flow of $669 million for the three months ended July 31, 2024, representing a decrease from the prior year.

As a result of these announcements, the company's shares have moved -6.0% on the market, and are now trading at a price of $17.64. If you want to know more, read the company's complete 10-Q report here.

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