HPE jumps as it raises full-year guidance – CNBC

Hewlett Packard Enterprise shares rose as much as 8% on Tuesday after the company said it was raising its full-year earnings guidance.

Here are the key numbers:

  • Earnings: 45 per share, excluding certain items, vs. 40 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $7.22 billion, vs. $7.26 billion as expected by analysts, according to Refinitiv.

HPE’s revenue declined 7% on an annualized basis in the fiscal third quarter, which ended July 31, according to a statement. The company’s revenue has now declined year over year for three consecutive quarters.

The majority of HPE’s revenue comes from its Hybrid IT business segment, which includes servers, storage and networking equipment for data centers. The segment produced $5.55 billion in quarterly revenue down 9% on an annualized basis and below the $5.70 billion consensus among analysts polled by FactSet.

In the quarter HPE made a one-time arbitration award to DXC, a company that was formed as HPE’s Enterprise Services Business spun out and merged with CSC in 2017. Also in the quarter HPE announced its intent to buy supercomputing company Cray in a deal valued at around $1.3 billion. HPE now expects the deal to close by the end of the 2019 fiscal year, which is earlier than expected.

With respect to guidance, HPE raised full-year guidance to $1.72 to $1.76 in earnings per share, excluding certain items. Analysts polled by Refinitiv were expecting $1.68 in earnings per share, excluding certain items, for the full fiscal year.

Shares of HPE are down 2% from the beginning of 2019.

Executives will discuss the results with analysts on a conference call at 5 p.m. Eastern time.

This is breaking news. Please check back for updates.

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