HPE Surprises With Revenue Gain After Slimming Down
(Bloomberg) — Hewlett Packard Enterprise Co. is emerging from an aggressive effort to slim down, reporting stronger-than-projected quarterly sales on healthier demand for servers and storage gear that help run data centers.
Revenue rose 2.5 percent to $8.2 billion in the fiscal third quarter, marking the first time in five quarters the corporate technology company beat analysts’ sales estimates. Adjusted profit was 30 cents a share, the Palo Alto, California-based company said Tuesday in a statement.
See also: HPE Acquires Cloud Technology Partners to Drive Hybrid Cloud
In the face of competition from cloud computing providers, Chief Executive Officer Meg Whitman has spent much of the past two years shrinking her company, trying to make it more responsive to key markets. That process began with the split from HP Inc., the maker of printers and computers, in late 2015, and continued this year by separating from its large services and software businesses. She can already point to steadier demand for the remaining products.
“Overall, it’s nice to see revenue on the core business move to growth,” said David Heger, an analyst at Edward Jones & Co.
Shares rose as much as 5.8 percent in extended trading after closing at $14.04 in New York. The stock has gained 4.4 percent this year.
Profit excluding some costs will be 26 cents to 30 cents a share in the current quarter, Hewlett Packard Enterprise said in the statement. The company reduced its fiscal year outlook