HPE beats expectations in third quarter earnings
Wed 6 Sep 2017
HPE has released its third quarter earnings for this year, with better than expected results causing its stock price to rise.
Net revenue for the quarter was up 3% from the same period last year, at $8.2 billion – equating to a rise of 6% when adjusted for divestitures and currency.
Earnings per share (EPS), after GAAP dilution, came to $0.10 (approx. £0.07), significantly more than the previously provided outlook of $0.02. The company notes that this is largely due to the spinoff of its non-core software assets to Micro Focus, a deal which was recently completed.
Non-GAAP diluted EPS from continuing operations was $0.31, down nine cents from $0.40 in last year’s third quarter.
HPE CEO, Meg Whitman, viewed the results positively. She said: “The results of the third quarter are an encouraging sign of the progress we are making.
“With better execution, we drove overall revenue growth, exceeded our EPS targets and improved our operating margins sequentially, all while completing the spin-merge of our Software business. There’s more work to do, but we are on the right track.”
Whitman has been in the news recently following speculation that she was a top contender to become Uber’s new CEO, after the controversial exit of Travis Kalanick and general boardroom turmoil at the taxi giant. The job was ultimately taken by Expedia boss Dara Khosrowshahi.
Looking ahead to the final quarter, HPE estimated GAAP diluted earnings per share to be between $0.00 and $0.04, and non-GAAP diluted earnings to be around the $0.26 to $0.30 mark.
The split across the company’s departments shows the majority of its revenue coming from the enterprise aspect, with $6.8 billion of revenue coming from the Enterprise Group, $718 million from software and $897 million from financial services.
HPE recently acquired Boston-based consultancy firm Cloud Technology Partners (CTP) in a move to assert its position in the global hybrid cloud market.