HP Enterprise sees FY18 adjusted EPS $1.15-$1.25, consensus $1.20
HPE expects its non-GAAP operating margin to be approximately 9.5%. With OI&E expense of approximately $300 million, a non-GAAP tax rate of 20-22% and a share count of 1.60 billion to 1.62 billion shares outstanding, it expects non-GAAP diluted EPS of $1.15 to $1.25. On a normalized basis, free cash flow is expected to be approximately $2 billion, in line with non-GAAP net earnings. However, in FY18, the company will have $200 million of legacy restructuring and separation payments, $300 million of payments for tax settlements, and $600 million of funding for HPE Next. This will be offset by $100 million of real estate sales. After these payments, as-reported free cash flow is expected to be approximately $1 billion.