uploads///

Which Business Segments Drove HPE’s Revenue in Q4 2018?

By

Dec. 5 2018, Updated 11:20 a.m. ET

Intelligent Edge led revenue growth for HPE

Hewlett Packard Enterprise (HPE) has three primary business segments: Intelligent Edge, Hybrid IT, and Financial Services. The Intelligent Edge segment experienced sales growth of 17% YoY (year-over-year) in the fourth quarter of fiscal 2018. This segment reported revenue of $814 million and accounted for 10% of total sales.

The operating margin for the Intelligent Edge segment was 11% in the quarter. HPE’s Aruba product revenue rose 17%, while its Aruba services revenue rose 16%.

Article continues below advertisement

Hybrid IT

HPE’s Hybrid IT segment accounted for 79% of its total sales at $6.4 billion in the quarter. The company’s Hybrid IT sales rose 5% YoY, with its compute revenue rising 9% and its storage revenue rising 6%. Its HPE Pointnext sales fell 3%.

The Hybrid IT segment’s operating profit was $764 million, or 12%, in the fourth quarter.

Financial Services

HPE’s Financial Services segment reported sales of $939 million in the fourth quarter and accounted for 11% of total sales. The company’s Financial Services sales fell 7% YoY, but its financing volumes rose 8% in the quarter.

The segment’s operating profit rose 20 basis points to 7.8% in the period.

North America led sales for HPE

The North American region accounted for 42% of HPE’s total sales, a rise of 3%, in the fourth quarter of fiscal 2018. Europe, the Middle East, and Africa saw a sales rise of 11% and accounted for 36% of HPE’s total revenue. The Asia-Pacific region’s revenue was down 5% in the fourth quarter, accounting for 22% of revenue.

Advertisement

More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Financials
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Consumer
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    Consumer
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.