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.