Information technology giant Hewlett Packard Enterprise (NYSE: HPE) reported second-quarter revenues that missed the street consensus, even as the bottom-line came in stronger than expected. Meanwhile, the company raised its full-year EPS guidance, triggering a stock gain of 3.9% during the aftermarket hours.
Revenues for the quarter edged down 4% to $7.2 billion, missing the average analysts’ consensus of $7.44 billion. On the other hand, adjusted net income increased to 42 cents per share from 32 cents per share last year. Analysts were expecting earnings of just 36 cents per share in the second quarter.
CEO Antonio Neri said, “In Q2 we demonstrated traction in critical areas for our customers that delivered strong margin improvement, EPS above our outlook and solid cash flow.”
Raised outlook
For fiscal 2019, HPE now estimates GAAP EPS in the range of $0.98 to $1.08. This compares with the earlier projection of $0.88 to $0.98. Adjusted EPS outlook was raised to $1.62 to $1.72, from the prior guidance of $1.56 to $1.66.
READ: FORMLABS – A UNICORN MOLDING ITS SPACE IN THE 3D PRINTING MARKET
For the third quarter, Hewlett Packard expects GAAP EPS of $0.29 to $0.33, while adjusted EPS is projected to be $0.40 to $0.44.
Hewlett Packard has been on a mission to diversify its portfolio. The most recent move in this regard is the acquisition of Cray (NASDAQ: CRAY) for about $1.30 billion, which gives HPE a leeway into the supercomputer business.
READ: THIS TIME ELON MUSK GETS AN AWARD FOR HIS TWEETS
The deal values Cray’s stock at $35, representing a premium of about 17%, and is tentatively scheduled to close early next year. It is expected to be accretive to HPE’s adjusted earnings after one full year of completion.
The acquisition is meaningful in a way that it helps HPE stay relevant in a competitive market that is dominated by the likes of International Business Machines (NYSE: IBM).
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
