HP Announces Fiscal 2016 Financial Outlook for Hewlett Packard Enterprise

SAN JOSE, CA--(Marketwired - Sep 15, 2015) -  HP (NYSE: HPQ)

• Estimates non-GAAP diluted net EPS for fiscal 2016 of $1.85 to $1.95 and GAAP diluted net EPS for fiscal 2016 of $0.75 to $0.85
• Estimates free cash flow of $2.0 to $2.2 billion in fiscal 2016 or normalized free cash flow of $3.7 billion before separation and restructuring cash payments
• Expects to return at least 50% of free cash flow in fiscal 2016 to shareholders through dividends and share repurchases

Today at HP's 2015 Securities Analysts Meeting, the future Hewlett Packard Enterprise Company leadership team provided a strategy update and financial outlook for the new company.

Meg Whitman, current Chairman, President and Chief Executive Officer of HP, who will become President and Chief Executive Officer of Hewlett Packard Enterprise, gave an overview of how the new company will build on its leading position in infrastructure, software, services and cloud to help enterprise customers address their four most pressing challenges:

• Transforming to a hybrid infrastructure that gives greater flexibility and agility, while ensuring that there is no disruption to legacy systems.
• Protecting the digital enterprise from external risk.
• Empowering the organization to use data to give the insights needed to anticipate risk and opportunity.
• Enabling workplace productivity by delivering the right tools that are optimized for business critical tasks at the right economics.

The new Hewlett Packard Enterprise will have more than $50 billion in annual revenue and will be focused on delivering unrivaled integrated technology solutions to a market that has the potential to exceed $1 trillion over the next three years. Hewlett Packard Enterprise will trade under the ticker symbol "HPE". 

"Hewlett Packard Enterprise will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business," said Whitman. "As a separate company, we are better positioned than ever to meet the evolving needs of our customers around the world."

2016 Outlook
Tim Stonesifer, who will become Chief Financial Officer of Hewlett Packard Enterprise, provided a financial outlook for Hewlett Packard Enterprise in fiscal 2016. As a standalone company, Hewlett Packard Enterprise expects fiscal 2016 revenue to grow year-over-year in constant currency driven by continued strength in servers, storage and networking, and stabilization in services and software. The company anticipates currency impact to be a three point headwind to revenue growth in fiscal 2016.