HP Enterprise sees compounded annual revenue growth rate of 1%-3% for FY19-FY22
HPE provided its long-term financial model for FY19-FY22. The company expects compounded annual revenue growth rate of 1%-3% adjusted for currency driven by Edge, Storage, High Performance Compute & Mission Critical Systems and related services. The company expects continued improvements in gross margins through structural efficiencies and favorable product mix. The company expects compounded annual non-GAAP operating profit growth rate of 5%-7% driven by investments in key growth areas and optimized operating model. Non-GAAP diluted net EPS is expected to grow at a higher compounded annual growth rate of 7%-9% with long-term free cash flow to track earnings. The company expects capital distributions to shareholders to be between 50%-75% of free cash flow over the long-term, with valuation-based share repurchases and balanced annual dividend distributions.