Hewlett Packard Enterprise revenue misses estimates, shares fall

Reuters November 25 | Updated on November 26, 2019

Hewlett Packard Enterprise Co. is seen on the floor of the New York Stock Exchange (NYSE) in New York   -  File photo: Bloomberg

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 per cent in trading after the bell.

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

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

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.

HPE, whose shares have risen 32 per cent 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, or 36 cents per share, in the fourth quarter ended Oct. 31, compared with a loss of $757 million, or 52 cents per share, a year earlier.

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

Published on November 26, 2019

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