Hewlett Packard Enterprise And HP Reported Their Earnings: Here's How They Performed

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Hewlett-Packard split itself into two separate companies on Nov. 2, 2015. The first, Hewlett Packard Enterprise Co HPE, focuses on selling hardware such as servers and data centers, while HP Inc HPQ focuses on selling individual printers and personal computers to consumers and businesses.

On Thursday the two separate entities reported their respective earnings results. Here is a summary of the print.

Hewlett Packard Enterprise

  • HPE earned $0.45 per share in the fiscal first quarter on revenue of $11.4 billion.
  • Wall Street analysts were expecting the company to earn $0.44 per share on revenue of $12.07 billion.
  • Revenue fell 10 percent from the same quarter a year ago and was lower by 4 percent when adjusted for divestitures and currency.
  • HPE cited three "significant" headwinds moving forward: 1) foreign exchange, 2) higher commodity pricing and 3) some near-term execution issues.
  • Given HPE's headwinds, the company slashed its fiscal 2017 earnings per share outlook by $0.12.
  • HPE expects to earn $1.88 to $1.98 per share for the full year versus the $2.10 per share analysts are expecting.
  • Shares of HPE were trading lower by around 9 percent ahead of Friday's market open.
  • However, shares are higher by around 80 percent over the past year and higher by 45 percent since the parent company split itself into two entities.
See Also: Are Hewlett Packard Enterprise's Pending Earnings A Non-Catalyst?

HP Inc.

  • HP earned $0.38 per share in the fiscal first quarter on revenue of $12.7 billion.
  • Wall Street analysts were expecting the company to earn $0.37 per share on revenue of $11.8 billion.
  • Revenue rose 4 percent or 5 percent in a constant currency basis from a year ago.
  • Looking forward HP guided its second-quarter earnings per share to a range of $0.37 to $0.40 versus the $0.39 per share analysts are expecting.
  • Shares of HP were trading lower by around 2 percent ahead of Friday's market open.
  • Similar to HPE, shares of HP are on fire over the past year and higher by around 70 percent.
  • Bernstein's Toni Sacconaghi maintains an Outperform rating and $18.50 price target on the stock after the earnings report.
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    Posted In: Analyst ColorEarningsLong IdeasNewsReiterationAnalyst RatingsMoversTechTrading IdeasBernsteinToni Sacconaghi
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