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HP Enterprise Stock Falls on Continued Supply-Chain Concern

HP Enterprise expects supply concerns to continue for at least the next couple of quarters.
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Shares of Hewlett Packard Enterprise  (HPE) - Get Hewlett Packard Enterprise Co. Report were lower after the provider of information-technology products and services topped fiscal-third-quarter earnings expectations but its current-quarter guidance reflected continue supply-chain concern.

For the quarter ended July 31 the Houston company reported adjusted earnings of 47 cents a share, a 31% year over year increase. Analysts surveyed by FactSet were expecting earnings of 42 cents.

Revenue came up a bit short at $6.9 billion against the FactSet estimate of $6.94 billion.

"The impacts of the pandemic continue to accelerate the shift we predicted years ago to an edge-centric, cloud-enabled and data-driven world," Chief Executive Antonio Neri said in a statement. 

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And the company expects fourth-quarter profit of 44 cents to 53 cents per share, a 48.5-cent midpoint that just misses analyst expectations of 49 cents a share, according to Bloomberg. 

The company's fortunes will also be hampered by supply concerns. 

"There is no question that supply continues to be a challenge and will continue to be for the next couple of quarters,” Neri said in an interview, according to Bloomberg. 

HPE shares at last check were off 2.5% at $15.01. 

The company also reinstated its share-buyback program and targeted share repurchases of as much as $250 million in the fiscal fourth quarter. 

In July, the company was upgraded by analysts after the company agreed to acquire cloud data management and protection company Zerto for $374 million.