Hewlett Packard Enterprise (HPE) reported fiscal second-quarter earnings late Tuesday that topped estimates amid its refocus on cloud-based computing services. HPE stock slipped as July-quarter profit guidance came in below Wall Street targets.
X
The maker of computer servers, networking equipment and data storage gear said adjusted earnings were 46 cents a share, up 70% from a year ago. Revenue rose 9% to $6.7 billion, the company said.
A year earlier, HPE earnings were 22 cents a share on sales of $6.29 billion. Analysts expected HPE earnings of 42 cents on sales of $6.62 billion for the period ended April 30.
HPE stock slipped nearly 2% to 15.75 in after-hours trading on the stock market today.
For the quarter ending in July, the rival of Cisco Systems (CSCO) and Dell Technologies (DELL) forecast earnings of 41 cents at the midpoint of guidance vs. analyst estimates of 43 cents.
“The overall demand environment is improving, and we are seeing traction across our portfolio,” Chief Financial Officer Tarek Robbiati said in a written press release.
HPE Stock Joins Cisco In 2021 Rally
Cisco stock has advanced some 18% in 2021. Cisco stock trades above a buy zone, according to IBD Stock Checkup.
HPE stock has gained 34% in 2021. Heading into the HPE earnings report, the stock traded just below an entry point of 16.24. HPE stock owns a Relative Strength Rating of 78 out of a best-possible 99, according to IBD MarketSmith analysis.
HPE in early 2019 acquired U.S. supercomputer maker Cray, taking on IBM (IBM). The deal marked the first acquisition under Chief Executive Antonio Neri. He took over as CEO from Meg Whitman in February 2018.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
How This IBD Tool Simplifies The Search For Top Stocks
Find Compelling Growth Stocks With IBD’s Stock Of The Day
Get A Free Trial Of IBD Leaderboard
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
