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.
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
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.
Juniper Networks Inc.
and Arista Networks Inc.
He grades HPE shares as outperform with a price target of $20.