Hewlett Packard Enterprise revenue misses estimates, shares fall

Tue, 26 Nov 2019 04:31:27 +0530

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FILE PHOTO: Signs for Hewlett Packard Enterprise Co. cover the facade of the New York Stock Exchange November 2, 2015. REUTERS/Brendan McDermid

(Reuters) - Hewlett Packard Enterprise Co (HPE.N) missed Wall Street estimates for quarterly revenue on Monday, hit by lower demand for its servers and storage products, sending its shares down about 4% in trading after the bell.

Sales in its IT business, which makes storage and data centre networking products, fell 10.5%, while its unit that makes wireless network products posted a 6.5% drop.

The company had previously warned of “uneven demand” due to U.S.-China trade tensions.

Hewlett Packard Enterprise, known for its computer servers, beat analysts’ average estimates for quarterly profit. Excluding items, it earned 49 cents per share, compared to estimates of 46 cents, according to IBES data from Refinitiv.

HPE, whose shares have risen 32% this year, maintained expectations for full-year adjusted profit of between $1.78 per share and $1.94 per share.

The company posted net earnings of $480 million (£374.12 million), or 36 cents per share, in the fourth quarter ended Oct. 31, compared with a loss of $757 million, or 52 cents per share, a year earlier.

HPE’s revenue fell 9.2% to $7.22 billion, below analysts’ estimates of $7.4 billion.

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