Hewlett Packard Enterprise Co (HPE) released its 8-K presentation for the second quarter of fiscal 2024, showcasing strong performance that surpassed analyst expectations. Revenue reached $7.2 billion, up 3% year-over-year, exceeding estimates of $6.82 billion. The company’s annualized revenue run rate was $1.5 billion, up 37% year-over-year.Despite revenue growth, HPE’s gross margins faced pressure, with GAAP and non-GAAP gross margins decreasing significantly. GAAP diluted EPS was $0.24, down 25% from the prior year, while non-GAAP diluted EPS was $0.42, surpassing expectations.Segment performance varied, with the Servers segment showing strong growth, while the Intelligent Edge segment experienced a decline in revenue. Cash flow from operations increased to $1,093 million, with free cash flow reaching $610 million. HPE returned $214 million to shareholders through dividends and share buybacks.HPE’s CEO, Antonio Neri, highlighted the company’s strong results, driven by AI systems revenue growth and improved supply chain conversion. CFO Marie Myers emphasized the positive impact of AI systems order momentum and disciplined execution on performance. The full-year non-GAAP EPS and revenue guidance were raised in light of strong order momentum and execution.Income statement metrics for the second quarter of 2024 showed continued growth in net income and earnings, despite declining gross margins and EPS. HPE’s strong revenue growth and strategic focus on AI systems and hybrid cloud solutions position the company well for future success. The management’s confidence in maintaining momentum is reflected in the revenue growth and full-year EPS guidance.
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