A 7% increase in Hybrid IT revenues, the company’s core business segment, lifted overall revenues by 10% to $7.47 billion. Improved performance from Financial Services unit and a double-digit growth in Intelligent Edge division revenues also contributed to the top-line.
“We delivered revenue growth in all business segments, expanded overall profitability, completed important milestones in our HPE Next initiative and continued to invest in innovation. I’m confident we will deliver on our annual FY18 outlook,” said CEO Antonio Neri.
Hewlett Packard, which is on the path of a turnaround, raised its quarterly dividend by 50% during the second quarter and returned around $1 billion to shareholders in the form of dividends and share repurchases.
Adjusted earnings and revenues exceeded expectations, aided by strong performance from all the business segments
Taking a cue from the sustained improvement in quarterly financial performance, the company revised up its full-year earnings guidance to the range of $1.70 per share to $1.80 per share, and raised the outlook for adjusted earnings to the $1.40-$1.50 per share range. Adjusted earnings exclude after-tax charges related to transformation costs and the amortization of intangible assets.
For the third quarter, the California-based company forecasts earnings in the range of $0.19 to $0.23 per share and adjusted earnings between $0.35 and $0.39 per share.
After climbing more than 20% since the beginning of 2018, shares of Hewlett Packard gained further in the after-hours Tuesday following the earnings announcement.