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Fiscal 2021 Full-Year Financial Highlights:
•Orders: Strengthening demand through the year drives growth up 16% from the prior-year period
•Revenue: $27.8 billion, up 3% from the prior-year period
•Diluted net earnings per share (EPS)
◦GAAP of $2.58, up $2.83 from prior-year period
◦Non-GAAP of $1.96, up 27% from the prior-year period
•Cash flow from operations: $5.9 billion including $2.2 billion of cash after-tax impact from Oracle’s satisfaction of the judgment in the Itanium litigation, up $3.6 billion from the prior-year period
•Free cash flow2, 3: $1.6 billion, up $1.0 billion from the prior-year period
•Capital returns to shareholders: $838 million in the form of dividends and share repurchases
Outlook:
•First quarter Fiscal 2022: Estimates GAAP diluted net EPS to be in the range of $0.19 to $0.27 and non-GAAP diluted net EPS to be in the range of $0.42 to $0.50
◦Declaring Q1 dividend of $0.12 per share payable on January 7, 2022
•Fiscal 2022: Reiterates GAAP diluted net EPS to be in the range of $1.24 to $1.38 and non-GAAP diluted net EPS to be in the range of $1.96 to $2.10
•Fiscal 2022 free cash flow3: Reiterates free cash flow guidance to be in the range of $1.8 to $2.0 billion
•Committed to returning at least $500 million in share buybacks in Fiscal 2022
Hewlett Packard Enterprise (NYSE: HPE) today announced financial results for fiscal year 2021 and the fourth quarter, ended October 31, 2021.
“HPE ended fiscal year 2021 with record demand for our edge-to-cloud portfolio, and we are well positioned to capitalize on the significant opportunity in front of us,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “In 2021, we accelerated our pivot to as a service, strengthened our core capabilities, and invested in bold innovation in high-growth segments. As our customers continue to demand greater connectivity, access to solutions that allow them to extract value from their data no matter where it lives, and a cloud-everywhere experience, HPE is poised to accelerate our market leadership and provide strong shareholder returns.”
“HPE executed with discipline and exceeded all of our key financial targets in FY21.” said Tarek Robbiati, EVP and CFO of Hewlett Packard Enterprise. “The demand environment has been incredibly strong and accelerated in the second half of the year, which gives us important momentum headed into next year. We are operating with greater focus and more agility and are well positioned to deliver against our FY22 outlook.”
Fourth Quarter Fiscal Year 2021 Results:
Net revenue of $7.4 billion, up 7% sequentially and above normal sequential seasonality; up 2% from the prior-year period or flat when adjusted for currency.
Annualized revenue run-rate (ARR)1 of $796 million, up 36% from the prior-year period and total as-a-Service orders were up 114% from the prior-year period. Based on strong customer demand and growth in orders, we reiterate our 2021 Securities Analyst Meeting ARR guidance of 35-45% Compounded Annual Growth Rate from fiscal year 2021 to fiscal year 2024.
GAAP gross margins of 32.9%, up 230 basis points from the prior-year period and Non-GAAP gross margins of 33.0%, up 230 basis points from the prior-year period.
GAAP diluted net EPS was $1.91, compared to $0.12 in the prior-year period and above the previously provided outlook of $0.14 to $0.22 per share, primarily due to the judgment in the Itanium litigation with Oracle.
Non-GAAP diluted net EPS was $0.52, compared to $0.41 in the prior-year period and at the high end of the previously provided outlook of $0.44 to $0.52 per share. Fourth quarter non-GAAP diluted net EPS excludes after-tax adjustments of $1.39 per diluted share primarily related to the judgment in the Itanium litigation with Oracle partially offset by transformation costs, early debt redemption costs, stock-based compensation expense and the amortization of intangible assets.
Cash flow from operations of $3.0 billion including $2.2 billion of cash after-tax impact from Oracle’s satisfaction of the judgment in the Itanium litigation, up $2.2 billion from the prior-year period.
Free cash flow of $94 million, down $129 million from the prior-year period.
Capital returns to shareholders of $157 million in dividends and $213 million of share repurchases.