Hewlett Packard Enterprise Co. swung to profit in the second fiscal quarter helped by strong revenue, and boosted its full-year EPS outlook for fiscal 2018.
The technology solutions provider reported net earnings of $778 million, or 49 cents per diluted share, in the quarter that ended April 30 from a loss of $612 million, or 37 cents per share, in the same period a year prior.
On a non-GAAP basis, diluted EPS came in at 34 cents, down from 35 cents but beating S&P Capital IQ's consensus normalized EPS estimate of 31 cents.
Net revenue totaled $7.47 billion for the quarter, up from $6.81 billion in the same quarter last year, driven by HPE's hybrid IT business with net revenue of $6.02 billion from $5.64 billion.
The intelligent edge segment posted net revenue of $710 million from $606 million, while financial services segment net revenue stood at $916 million from $872 million.
HPE now expects its full fiscal 2018 GAAP diluted net EPS in the range of $1.70 to $1.80, up from $1.35 to $1.45, and non-GAAP diluted net EPS in the range of $1.40 to $1.50 from $1.35 to $1.45. For the third quarter, the company expects GAAP diluted net EPS in the range of 19 cents to 23 cents and non-GAAP diluted net EPS in the range of 35 cents to 39 cents.
The company said it intends to redeem $1.6 billion aggregate principal amount of its outstanding 2.850% senior notes due 2018 at a price equal to 100% of the principal amount plus a "make-whole" premium determined pursuant to the terms of the indenture governing the notes and accrued and unpaid interest. The redemption is scheduled for June 29.
