How Does Hewlett-Packard Enterprise View Fiscal 1Q17?



Non-GAAP diluted EPS between $0.42 and $0.46

Hewlett-Packard Enterprise (HPE) expects non-GAAP (generally accepted accounting principles) EPS (earnings per share) of between $0.42 and $0.46 in fiscal 1Q17. It expects its GAAP EPS to be between $0.03 and $0.07.

In fiscal 2017, HPE expects non-GAAP EPS of $2–$2.1 following its mergers and spin-offs and EPS of $1.25–$1.35 as a standalone company. Cash flow for the combined HPE is expected to be between $3.6 billion and $3.9 billion, and cash flow for HPE alone is expected to be $2.1 billion–$2.4 billion in fiscal 2017.

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During the company’s fiscal 4Q16 earnings call, HPE’s chief financial officer, Tim Stonesifer, stated, “We expect reported free cash flow of negative $1.8 billion, as cash will be significantly impacted by restructuring and separation payments, the ES pension funding, and the mid-year impact of the spin-merge transactions on cash generation.”

In fiscal 2016, HPE’s return on equity fell 200 basis points YoY (year-over-year) to 14.1%, driven by lower volumes in fiscal 2013 and fiscal 2014 that resulted in lower residual sales.

What do analysts expect in fiscal 1Q17?

Hewlett-Packard Enterprise is set to announce its fiscal 1Q17 results in February 2017. Analysts expect that it will post revenue of $12.3 billion for the quarter ended in January 2017, with a low estimate of $11.9 billion and a high estimate of $12.8 billion.

Analysts expect HPE’s fiscal 1Q17 EPS to be $0.46, with a high estimate of $0.51 and a low estimate of $0.42.


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