HPE beats slightly on earnings, secures $2bn NSA contract

3 Sep 2021

Image: © Angelo B (CH)/Stock.adobe.com

The company reported a 31pc EPS increase and upgraded its full-year financial projections after a ‘very impressive’ quarter.

Hewlett Packard Enterprise (HPE) posted earnings for the quarter ending 31 July 2021 that edged out market expectations.

The enterprise IT company reported net revenue of $6.89bn, a 1pc increase year-on-year, roughly in line with predictions of $6.92bn. HPE’s diluted earnings-per-share (EPS) came to $0.47, up 31pc and above Wall Street’s expectations of $0.42.

Antonio Neri, the company’s president and CEO, said: “We delivered a very impressive Q3 performance, marked by strong order growth, expanded margins and record free cash flow.

“The impacts of the pandemic continue to accelerate the shift we predicted years ago to an edge-centric, cloud-enabled and data-driven world. Now, more than ever, companies need secure connectivity, faster insights from data, and a cloud experience everywhere. We expect those trends to continue.”

He added: “Digital transformation is no longer a priority but a strategic imperative.”

HPE CFO Tarek Robbiati also announced the company was, on the basis of the latest results, upgrading its full-year earnings forecast “to reflect the continued momentum in the demand environment and our strong execution”.

Earlier this week, HPE completed its acquisition of cloud management outlet Zerto. The $374m deal was announced in early July.

On the same day, HPE announced it had secured a 10-year $2bn contract with the US National Security Agency (NSA). The deal will see the company provide the NSA with high-performance computing (HPC) services through its GreenLake platform.

The NSA will use the HPE platform for AI and machine learning capabilities to support forecasting and analysis.

Commenting on the deal, HPE’s senior vice-president and general manager for HPC Justin Hotard said: “Customers are demanding HPC capabilities on their most data-intensive projects combined with easy, simple, and agile management.

“By using the HPE GreenLake platform, which delivers secure on-premises solutions as a service, the NSA is gaining industry-leading HPC solutions to tackle a range of complex data needs, but with a flexible, as-a-service experience.”

Houston-based HPE was spun out from Hewlett-Packard in 2015 with a focus on enterprise cloud and network services, allowing HP to focus on its core PC and printer manufacturing business.

Last month, Silicon Republic spoke to HPE’s Paul Meehan on the impacts, benefits and risks of cloud-first strategies.

Jack Kennedy is a freelance journalist based in Dublin