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Hewlett Packard Enterprise Co (HPE) Shares Skyrocket on Q1 Sales Beat

Karl Utermohlen

Hewlett Packard Enterprise Co (NYSE:HPE) unveiled strong quarterly earnings results that were ahead of the Wall Street consensus estimate.

Hewlett Packard Enterprise Co (HPE)

The enterprise information technology company posted first-quarter revenue of $7.7 billion, rising compared to the year-ago quarter. The figure was better than the year-ago revenue of $6.9 billion, while also topping analysts’ expectations of $7.07 billion, according to Thomson Reuters.

HPE also saw its adjusted earnings grow year-over-year by six cents to 34 cents per share. Analysts polled by Thomson Reuters were calling for earnings of 22 cents per share.

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The company posted storage revenue that topped the year-ago mark by 24%, while its DC networking revenue was also better, increasing by 27 percent compared to the year-ago quarter.

HPE also impressed on its financial services sector, with the metric’s revenue gaining 8% year-over-year. The company has been working under new CEO Antonio Neri since former boss Meg Whitman stepped down on February 1.

“Given the recent tax reform in the U.S., which will provide easier access to off-shore cash, we are increasing our shareholder return commitment and our investment in employees,” Neri said in a statement.

Among the new perks that its workers will receive, HPE is offering a higher ceiling in terms of the how much it will match employees’ contributions to the company’s 401(k) programs. The business will also invest in degree assistance programs for workers around the world.

For its second quarter, the company projects adjusted earnings of 29 to 33 cents per share, topping the 26 cents per share that Thomson Reuters forecasts. HPE’s full-year guidance is for adjusted earnings in the range of $1.35 to $1.45 per share, ahead of the $1.18 per share that Thomson Reuter’s outlook calls for.

HPE stock surged nearly 14% after hours on the company’s earnings report.

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