Following Tuesday's closing bell, the Palo Alto, Calif.-based IT company reported adjusted earnings of 61 cents a share on revenue of $12.5 billion. Revenue declined 7% over the prior-year quarter. Analysts surveyed by FactSet expected EPS of 60 cents on $12.8 billion in revenue.
CEO Meg Whitman said during a conference call that Hewlett Packard Enterprise, which split from HP Inc. (HPQ - Get Report) in November 2015, is "on track" with some its moves to divest some $17 billion in assets.
Following the divestitures, the company "can be much more targeted in the investments we make," Whitman noted. "We ought to be able to run much leaner and meaner."
Despite operating in a competitive environment, Whitman said that the company's leaner structure will give it a "much smaller group of competitors." This allows Hewlett Packard Enterprise to have a more "laser-like" focus, she said.
"During our first year as a standalone company, HPE delivered the business performance we promised, fulfilled our commitment to introduce groundbreaking innovation, and began to transform the company through strategic changes designed to enable even better financial performance," CEO Meg Whitman said.
"This success is proof that we're on the right course," she noted.
Shares of Hewlett Packard Enterprise were falling about 1.2% to $22.60 in after-hours trading on Tuesday.
For the full year of 2016, adjusted EPS was $1.92, while net revenue slid 4% year-over-year to $50.1 billion. Wall Street was looking for adjusted earnings of $1.92 per share on revenue of $50.5 billion, according to FactSet.
Going forward, Hewlett Packard Enterprise projects adjusted EPS in the range of 42 cents and 46 cents for the first quarter of fiscal 2017. Wall Street is modeling earnings of 46 cents a share, according to FactSet.
For the full fiscal year, the company anticipates adjusted earnings per share between $2.00 and $2.10. Analysts estimate adjusted earnings of $2.04 a share.
CFO Tim Stonesifer said in the earnings call that the company experienced continued revenue softness in Europe in the fourth quarter. But performance in the U.S. was "encouraging," Stonesifer added.
Going forward, however, Whitman anticipates that Hewlett Packard Enterprise will see a total addressable market of approximately $250 billion, which she estimates will grow between 2% and 3% annually.
About 24.10 million shares of the company have traded hands so far today, well above the 30-day average volume of roughly 11.47 million shares.