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Shares of HP Enterprise have risen 62% in the last 12 months.
Courtesy of HPE
Hewlett Packard Enterprise
it exceeded earnings expectations during its third fiscal quarter, although sales were slightly below expectations. Shares fell slightly at the end of trading on Thursday.
CEO Antonio Neri said De Barron that the company achieved record gross margins despite challenges such as supply constraints and inflationary costs.
HP
Enterprise (ticker: HPE), the IT infrastructure company that split from computer and printer specialist HP (HP) in 2015, reported adjusted third-quarter tax gains of $ 623 million, or 47 cents per action. This exceeded the consensus estimates of 42 cents per share, according to FactSet. On the other hand, sales of $ 6.9 billion were just below the agreed estimate of $ 6.94 billion.
Shares of HP Enterprise rebounded up and down in extended operations after the launch of profits and recently fell 1.2% to $ 15.20. Shares have risen 30% in 2021 and 62% in the last twelve months.
“This quarter was really marked by strong customer orders, strong profitability and record free cash flow,” Neri said. “We have a unique strategy, a unique portfolio from the limit to the cloud that resonates with our customers.”
Neri noted that the company’s adjusted gross margins of 34.7% were the highest the company has achieved in a quarter. He noted measures to mitigate costs amid supply challenges. It also promoted engineering capabilities that allow HP Enterprise to redesign and change components when needed.
The company raised its adjusted earnings forecasts for the current fiscal year to a range of $ 1.88 to $ 1.96 per share, compared to a previous range of $ 1.82 to $ 1.94.
“Even with the rigidity of the supply that we have seen, we are very sure of our capacity of execution [the fiscal fourth quarter], and then in early 2022, “Neri said.” And that’s why we’ve reconsidered our direction. “
Asked about spending on information technology amid some of the companies ’efforts to get back to the office, Neri said he’s not only bullish, but doesn’t expect the Delta variant of the Covid-19 to impact that spending.
“I think now customers have adapted to this new way of working,” he said. “And as the offices reopen, I think this will be an accelerator of this demand. But right now, even in a hybrid environment, or even companies that have no return to the office, demand is very, very solid. “
HP Enterprise’s core computing segment revenue fell 9% from 2020, to $ 3.1 billion, but rose from just under $ 3 billion in the second fiscal quarter. High-performance computer systems and Mission Critical Systems increased sales by 11% to $ 741 million. Sales to Intelligent Edge, which provides cutting-edge computer systems, rose 27% year-over-year to $ 867 million, accelerating 20% growth in the April quarter. Storage revenue increased 4% to $ 1.2 billion.
Write to Connor Smith at [email protected]