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Third quarter net revenue of $7.8 billion, up 4% from the prior-year period, and up 1% when adjusted for currency

Third quarter GAAP diluted net earnings per share of $0.29, above the previously provided outlook of $0.19 to $0.23 per share

Third quarter non-GAAP diluted net earnings per share of $0.44, well above the high-end of our outlook range of $0.35 to $0.39 per share

Returned $1.1 billion to shareholders in the form of share repurchases and dividends

Raised quarterly cash dividend per share by 50 percent aligned with prior communications

PALO ALTO, Calif., Aug. 28, 2018 (GLOBE NEWSWIRE) — Hewlett Packard Enterprise (NYSE: HPE) today announced financial results for its fiscal 2018 third quarter, ended July 31, 2018.

Third Quarter Fiscal Year 2018 Results Third quarter net revenue of $7.8 billion was up 4% from the prior-year period and up 1% when adjusted for currency.

Third quarter GAAP diluted net earnings per share (“EPS”) from continuing operations was $0.29, up from GAAP diluted net EPS from continuing operations of $0.17 in the prior-year period. Third quarter non-GAAP diluted net EPS from continuing operations was $0.44, up from non-GAAP diluted net EPS from continuing operations of $0.22 in the prior-year period. Third quarter non-GAAP net earnings from continuing operations and non-GAAP diluted net EPS from continuing operations exclude after-tax adjustments of $218 million and $0.15 per diluted share, respectively, primarily related to the impact of transformation costs, amortization of intangible assets, acquisition and other related charges, an adjustment to earnings from equity interests, excess tax benefits from stock based compensation, the impact of U.S. tax reform, and income tax valuation allowances and separation taxes.

“HPE has delivered a strong Q3 and our results prove we have the right strategy to deliver in the areas of highest value for our customers,” said Antonio Neri, President and CEO, HPE. “Solid execution across each of our business segments, combined with market momentum, will enable us to deliver FY18 revenue and earnings well beyond our original outlook provided at our Securities Analyst Meeting last year.”

HPE fiscal 2018 third quarter continuing operations financial performance

Outlook For the fiscal 2018 fourth quarter, Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.16 to $0.21 and non-GAAP diluted net EPS to be in the range of $0.39 to $0.44. Fiscal 2018 fourth quarter non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.23 per diluted share, primarily related to transformation costs and the amortization of intangible assets.

For fiscal 2018, Hewlett Packard Enterprise now estimates GAAP diluted net EPS to be in the range of $1.85 to $1.90 and non-GAAP diluted net EPS to be in the range of $1.50 to $1.55. Fiscal 2018 non-GAAP diluted net EPS estimates exclude the after-tax impact of approximately $0.35 per diluted share, primarily related to the benefit from the impact of U.S. tax reform, partially offset by transformation costs and the amortization of intangible assets.

Fiscal 2018 third quarter segment results

Hybrid IT revenue was $6.2 billion, up 3% year over year and flat when adjusted for currency, with a 10.6% operating margin. Compute revenue was up 5%, up 2% when adjusted for currency, Storage revenue was up 1%, down 2% when adjusted for currency, DC Networking revenue was down 6%, down 10% when adjusted for currency, and HPE Pointnext revenue was down 1%, down 2% when adjusted for currency.

Intelligent Edge revenue was $785 million, up 10% year over year and up 8% when adjusted for currency, with an 11.6% operating margin. HPE Aruba Product revenue was up 10%, up 7% when adjusted for currency, and HPE Aruba Services revenue was up 14%, up 14% when adjusted for currency.

Financial Services revenue was $928 million, up 3% year over year and up 3% when adjusted for currency, net portfolio assets were flat year over year, and financing volume was up 15% year over year. The business delivered an operating margin of 7.9%.

About Hewlett Packard Enterprise Hewlett Packard Enterprise is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. HPE enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future.