HP Enterprise Rises After Topping Estimates, Lifting Guidance

HP Enterprise rose after hours Tuesday after the company reported first-quarter results that topped estimates and raised its guidance.
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Shares of Hewlett-Packard Enterprise  (HPE) - Get Report rose after hours Tuesday after the provider of IT products and services reported fiscal-first-quarter results that topped estimates and raised its guidance. 

The Houston company reported adjusted earnings of 52 cents a share. Revenue fell 2% year over year to $6.8 billion. 

Analysts were expecting earnings of 41 cents a share on revenue of $6.74 billion.

"The global pandemic has brought a renewed focus on digital transformation as businesses are rethinking everything from remote work and collaboration to business continuity and data insight," Chief Executive Antonio Neri said in a statement.

Shares of Hewlett-Packard Enterprise rose 1.4% after hours to $14.70. They finished the regular Tuesday trading session down 0.7% at $14.50. 

For the second quarter, the company expects earnings between 38 cents and 44 cents a share compared with analyst estimates of 38 cents, according to FactSet. 

For the year HPE raised its earnings expectations to between $1.70 and $1.88 per share from its previous view between $1.60 and $1.78. 

Analysts are expecting earnings of $1.68 a share. 

The company also raised its free cash flow guidance to between $1.1 billion and $1.14 billion from $900 million to $1.1 billion.

"As the world heads to recovery, our customers are looking for the agility and simplicity of the cloud native world with the flexibility and control of a hybrid business model – and this is where we have a unique and differentiated value proposition," Neri said. 

Compute revenue fell 1% year over year to $3 billion in the first quarter while storage revenue fell 5% to $1.2 billion.