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: HPE reports revenue, earnings in line with forecasts

Hewlett Packard Enterprise Co. on Tuesday reported better-than-expected quarterly earnings and sales in line with Street estimates, sending shares up in after-hours trading.

The company 
HPE,
-3.36%

reported first-quarter net earnings of $513 million, or 39 cents a share, compared with net earnings of $223 million, or 17 cents a share, in the same quarter a year ago. HPE said adjusted earnings were 53 cents a share, up from 52 cents a share in the year-ago quarter.

HPE’s revenue of $6.96 billion improved 2% from $6.83 billion a year ago.

“We are off to a strong start delivering against our FY22 commitments, with our third quarter in a row of more than 20% year-over-year order growth bolstering our confidence for sustained revenue growth,” HPE Chief Financial Officer Tarek Robbiati said in a statement announcing the results.

Sales from compute ($3 billion, up 1%) and storage ($1.2 billion, down 3%) were the money leaders. Intelligent Edge revenue was $901 million, an increase of 11% from the same quarter a year ago.

Analysts surveyed by FactSet had expected net income of 46 cents a share on revenue of $7 billion.

HPE also offered second-quarter adjusted earnings guidance of between 41 cents and 49 cents a share — or roughly what FactSet analysts forecast (45 cents a share).

HPE’s stock has slipped 2.4% in 2022. The broader S&P 500 index
SPX,
-1.55%

 has declined 10% this year.

The results mirrored the expectations of Evercore ISI analyst Amit Daryanani, who predicted stronger networking demand following earlier financial reports from Cisco Systems Inc.
CSCO,
-2.06%
,
Juniper Networks Inc.
JNPR,
-2.10%

and Arista Networks Inc.
ANET,
-3.95%
.
He grades HPE shares as outperform with a price target of $20.

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