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HPE higher after reporting estimates that beat expectations

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HPE reported quarterly earnings that beat consensus estimates. HPE reported net quarterly revenue of $6.83B. and an adjusted EPS of 52 cents, compared Wall Street estimates of $6.74B. in revenue and an adjusted EPS of 41 cents. The Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the key metrics.

Video Transcript

- Right there, we're going to go to Jared Blikre. He's got earnings for us from HPE. Jared?

JARED BLIKRE: Yeah, nice boost in their full-year forecast here. And we'll get to those numbers in a second. First, I want to go over their first quarter results. Net revenue coming in, and it's a nice beat, $6.83 billion. Down slightly year over year, but it is higher than what Wall Street estimated, $6.74 billion. And in that computing revenue, that was $2.99 billion. Estimate was for lower at $2.85 billion. So it beat there.

Storage revenue, it looks like that's in line. Intelligent edge coming in with a beat, up $806 million. Financial services revenue also beating, $860 million. And then on the adjusted EPS side, their bottom line estimate was $0.41, but they beat that. Came in at $0.52 cents. Also operating margin quite a bit higher than expected, 11.3%. Estimate was for 9.3%.

And finally cash flow from operations about $1 billion. And that is up $1 billion from the prior year period. Now for their full-year forecast, they're seeing adjusted EPS at $1.70 to $1.88. And the low end of that range is actually the of Street's estimate, so nice beat there. Free cash flow, another crucial key metric there. That's coming in at $1.1 billion to $1.4 billion for the full year. That's what they're seeing.

Previously, they only saw $900 million. And the estimate by the Street was at the low end of the company's range, $1.1 billion. And so really all around, pretty good report here. And we're seeing the stock now up about 2% in after-hours trade.