HPE shares jumped 8% immediately following the earnings announcement. Hewlett Packard shares are currently trading at the lowest level so far this year. They have gained 32% since the company was separated from the combined entity a few years ago. In the past twelve months, the stock lost about 19%.
Outlook raised
Hewlett Packard Enterprise raised its non-GAAP diluted net EPS outlook to a range of $1.72 to $1.76, compared to the prior range of $1.62 to $1.72.
For the fourth quarter, the San Jose, California-based firm estimates non-GAAP diluted net EPS to be in the range of $0.43 to $0.47.
Hewlett Packard is on an aggressive mission to exit low-margin businesses and shift focus to profitable products and services. The company bought Cray (CRAY) earlier this year, marking its foray into the supercomputer business.
Market watchers believe that the current market condition is not conducive to enterprise investments in tech hardware. They have warned that IT spending might pick up at a slower rate during the remainder of the year than initially estimated, which is bad news for PC makers like Hewlett Packard and Dell Technologies.