Hewlett Packard Enterprise revenue misses Wall Street estimates, shares fall by 4 percent

Hewlett Packard Enterprise, known for its computer servers, beat analysts' average estimates for quarterly profit.


Hewlett Packard Enterprise Co missed Wall Street estimates for quarterly revenue on Monday, hit by lower demand for its servers and storage products, sending its shares down about 4 percent in trading after the bell.

Sales in its IT business, which makes storage and data centre networking products, fell 10.5 percent, while its unit that makes wireless network products posted a 6.5 percent drop.

The company had previously warned of "uneven demand" due to US-China trade tensions.

Image: Reuters

HPE, whose shares have risen 32 percent this year, maintained expectations for full-year adjusted profit of between $1.78 per share and $1.94 per share. Image: Reuters

Hewlett Packard Enterprise, known for its computer servers, beat analysts' average estimates for quarterly profit. Excluding items, it earned 49 cents per share, compared to estimates of 46 cents, according to IBES data from Refinitiv.

(Also read: HP shares fell 5 percent after rejecting Xerox’s buyout bid, indicating counter offer)

HPE, whose shares have risen 32 percent this year, maintained expectations for full-year adjusted profit of between $1.78 per share and $1.94 per share.

The company posted net earnings of $480 million (£374.12 million), or 36 cents per share, in the fourth quarter ended 31 October, compared with a loss of $757 million, or 52 cents per share, a year earlier.

HPE's revenue fell 9.2 percent to $7.22 billion, below analysts' estimates of $7.4 billion.

 


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