HPE reported its fourth quarter and full fiscal year 2016 results on Tuesday. Quarterly earnings were effectively in line with expectations but revenue was below the mark.
The company reported $12.5 billion in Q4 revenue, down 7 percent from the period a year earlier. Its non-GAAP earnings came to 61 cents a share.
Wall Street was looking for earnings of 60 cents a share on revenue of $12.85 billion.
For the full fiscal year 2016, non-GAAP earnings came to $1.92, while revenue hit $50.1 billion, down 4 percent from the prior-year period.
“FY16 was a historic year for Hewlett Packard Enterprise,” President and CEO Meg Whitman said in a statement. “During our first year as a standalone company, HPE delivered the business performance we promised, fulfilled our commitment to introduce groundbreaking innovation, and began to transform the company through strategic changes designed to enable even better financial performance.”
Fourth quarter revenue was down year-over-year across all groups, except for financial services, which at $814 million was up 2 percent. Enterprise Services revenue reached $4.7 billion, down 6 percent, while software revenue was $903 million, also down 6 percent.
Enterprise Group revenue came in at $6.7 billion, down 9 percent year-over-year. Specifically, servers revenue was down 7 percent, storage revenue was down 5 percent, networking revenue was down 34 percent and Technology Services revenue was down 4 percent.
For Q1 2017, HPE estimates a non-GAAP EPS in the range of 42 cents to 46 cents. For fiscal 2017, HPE expects its non-GAAP EPS to be in the range of $2 to $2.10.
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