The CEO says that the surprising increase is due to corporate culture and team commitment.
Hewlett Packard Enterprise this week announced its financial results for the fourth fiscal quarter and full year, which ended October 31, 2022.
Bloomberg News reported that projected revenue for the current quarter beat analyst expectations, suggesting corporations are continuing to upgrade their technology infrastructure in an uncertain economy.
HPE forecasts sales of about $7.4 billion in the first fiscal quarter ending in January. This is significantly higher than analysts’ average projections of $7 billion, according to data compiled by Bloomberg. Profit, excluding some items, will be about 54 cents a share, whereas analysts projected 49 cents.
HPC down, AI up
The company’s chief executive was quick to credit HPE employees with helping boost performance. “HPE had an impressive fourth quarter, generating an outstanding performance across our key performance metrics”, said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “We are producing strong financial results as we meet new customer needs with the edge-to-cloud portfolio that only we can deliver.”
“The strength of our culture and commitment of our team members this quarter and throughout the entire 2022 fiscal year enabled us to innovate and take bold actions to pivot our portfolio and bolster our financial position as we head into 2023”, Neri added.
Sales in the company’s Intelligent Edge unit rose 18 percent. The division, a key part of HPE’s transformation plan, covers edge products that let companies gather and process data where it’s generated instead of sending it to an external storage center. Revenue from the company’s largest division, Compute, which includes datacenters and servers, jumped 16 percent. Both exceeded analyst expectations. Aruba Services revenue was also up high single digits from the prior-year period.
This surge in sales was offset somewhat by a drop in the segment including High Performance Computing & Artificial Intelligence (HPC & AI). Sales in that business declined 14 percent in the quarter, even though analysts had expected a revenue gain. CEO Neri explained that the unexpected decline was due to one large contract with the US Department of Energy for the Frontier supercomputer being pushed back to the current quarter.