HPE Shares Off; Tech Firm Swings to Profit on Weaker-Than-Expected Revenue
HP Enterprise (HPE) - Get Hewlett Packard Enterprise Co. Report shares were lower after hours Monday as the tech-solutions provider swung to a fiscal fourth-quarter profit from a year-earlier loss on weaker-than-expected revenue.
For the quarter ended Oct. 31, the San Jose, Calif., company earned 36 cents a share compared with a year-earlier loss of 52 cents. Adjusted earnings were 49 cents a share against 43 cents. Shares outstanding declined 9.3% to 1.32 billion.
Revenue fell 9.2% to $7.22 billion from $7.95 billion in the same period a year earlier.
A survey of analysts by FactSet was expecting earnings of 35 cents a share, or an adjusted 46 cents, on revenue of $7.4 billion.
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Gross-profit margin widened 2.5 percentage points to 33.2%.
At last check after hours, HPE shares were off 3.6% at $16.82. They'd closed the regular session Monday up 1.9% at $17.45.
For the fiscal first quarter, Hewlett-Packard Enterprise estimates profit at 20 cents to 24 cents a share, or an adjusted 42 cents to 46 cents.
The company affirmed its estimate of fiscal 2020 earnings of $1.01 to $1.17 a share, or an adjusted $1.78 to $1.94.
The FactSet-derived survey is looking for first-quarter profit of 29 cents a share, or an adjusted 45 cents, on revenue of $7.35 billion.
And for fiscal 2020 analysts are expecting HP Enterprise to earn $1.29 a share, or an adjusted $1.91.
