: HPE results top estimates, raises full-year earnings outlook


Shares of Hewlett Packard Enterprise Co. initially rose 1% in extended trading then slipped Tuesday after the company reported second-quarter financial results that topped Wall Street estimates.

The company

reported net earnings of $259 million, or 19 cents a share, compared with a net loss of $821 million, or 64 cents a share, in the same quarter a year ago. HPE said adjusted earnings were 46 cents a share, up from 27 cents a share in the year-ago quarter.

Revenue grew 12% to $6.7 billion from $6 billion a year ago. A year ago, America was in the grips of a lock-down period during the pandemic that paralleled HPE’s unusual February-April quarter.

Sales from computer ($3 billion, up 12%) and storage ($1.1 billion, up 5%) led the way. Intelligent Edge revenue was $799 million, an increase of 20% from the same quarter a year ago.

“Our disciplined execution on our strategic priorities is positively impacting both top and bottom line performance,” HPE Chief Executive Antonio Neri said in a statement. “We are strengthening our core computer and storage businesses, doubling down in our growth Intelligent Edge and HPC businesses and accelerating our pivot to as-a-service, while also advancing our cloud-first innovation agenda to become the edge-to-cloud platform as-a-service choice for our customers and partners.”

HPE declared a regular cash dividend of 12 cents per share, payable on July 7. The company, which recently relocated its corporate headquarters to Houston from San Jose, Calif., also raised its fiscal 2021 adjusted earnings to between $1.82 and $1.94 a share. It marks the third time HPE has raised guidance since October.

“Every cylinder of the engine is humming,” HPE Chief Financial Officer Tarek Robbiati told MarketWatch in a phone interview shortly after the results were disclosed. The full-year guidance reflects “continued momentum in demand across-the-board,” he said.

Analysts surveyed by FactSet had expected net income of 42 cents a share on revenue of $6.6 billion.

HPE’s stock has improved 36% so far in 2021. The broader S&P 500 index 

is up 12% this year.

NewsWatch: Few, if any, financial advisers expected to recommend bitcoin and dogecoin to clients — here’s how many now suggest buying crypto

Previous article

Mark Hulbert: Why stocks could tumble even as the post-pandemic U.S. economy grows

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News