Hewlett Packard Enterprise Reports Fiscal 2015 Q4 Results

Together with HP Inc., today, Hewlett Packard Enterprise announced Q4 2015 earnings results for Hewlett-Packard Company. Q4 was the final quarter where HP operated as one combined company and will be the last quarter where HPE and HP Inc. report results together.

In the fiscal 2015 fourth quarter, total revenue from Hewlett Packard Enterprise segments was $14.1 billion, which was down 4 percent year-over-year or up 3 percent in constant currency. Hewlett Packard Enterprise delivered a second consecutive quarter of constant currency revenue growth and is well positioned to deliver on its plan to grow in FY16.

Hewlett Packard Enterprise is off to a very strong start, said Meg Whitman, president and CEO of HPE, of the companys fiscal 2015 fourth quarter earnings. We believe that momentum will accelerate into FY16.

HPE reaffirmed an earnings per share estimate of $1.85 to $1.95 for the full fiscal year 2016.

Results by Business Segment:

Enterprise Group (EG) performed exceptionally well in Q4, with strong revenue growth, up 2 percent as reported or 9 percent in constant currency. Our server business was strong and our networking business also performed well with the Aruba acquisition driving strong cross-selling opportunities across wireless and data center switching. Storage significantly outpaced the market and in Technology Services we continued to see a growing proportion of the business come from high-value services.

Due to a more diversified customer base, stabilized revenue and significantly reduced cost structure, Enterprise Services (ES) had the best performance in Q4 than weve had in years. We continued to make good progress executing our plan to stabilize revenue and reduce our cost structure. Revenue declined 2 percent in constant currency, but we saw double digit growth in Strategic Enterprise Services from strength in Helion cloud and security services.

We are thrilled to announce that Under Armour is the first major customer win for Hewlett Packard Enterprise Services since our launch earlier this month. A big shout out to the team for working quickly to sign this new logo.

Weve made clear steps to streamline the Software portfolio and align it with the four transformation areas. Revenue declined 2 percent year-over-year in constant currency, and was flat after accounting for recent M&A transactions. Throughout the quarter, we announced the sale of TippingPoint and LiveVault, which will allow us to focus our resources and investments in higher-growth, strategic businesses.

Finally, our Financial Services business continued to be a key differentiator for the company. Hewlett Packard Enterprise Financial Services helps customers by creating consumption-based models to buy new technology or financing programs to transition out of legacy systems. Total FY15 financing volume increased 9 percent year-over-year in constant currency.

Outlook

Looking ahead, HPE estimates non-GAAP diluted net earnings per share to be between $1.85 and $1.95 for fiscal 2016. GAAP diluted net earnings per share are expected to be between $0.75 and $0.85. The non-GAAP estimates exclude the impact of restructuring costs, separation costs, intangible asset amortization and acquisition-related charges. For the first quarter of 2016, HPE estimates non-GAAP diluted EPS between $0.37 and $0.41, and GAAP diluted EPS between $0.09 and $0.13, with the non-GAAP estimates emitting the same factors as full year non-GAAP EPS.