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David Paul Morris/Bloomberg
Hewlett-Packard Enterprise
shares are buying and selling greater late Tuesday on better-than-expected outcomes for the enterprise computing firm’s fiscal third quarter ended July 31.
For the quarter, HP Enterprise (ticker: HPE) posted income of $6.eight billion, down 5.5% from a yr in the past, however up 13% sequentially, and nicely forward of the Wall Street analyst consensus at $6.06 billion. Non-GAAP, or non-generally accepted accounting rules, earnings had been 32 cents a share, forward of the Street consensus of 23 cents. The corporate stated cash movement from operations was $1.5 billion, up 23% from a yr earlier, whereas free cash movement was $924 million, up 43%.
After declining to offer steerage final quarter, HP Enterprise is again to forecasting. The corporate sees fiscal fourth quarter non-GAAP earnings of 32 to 36 cents a share, forward of the Street at 31 cents. For the total fiscal yr, that interprets to non-GAAP earnings of $1.30 to $1.34 a share, forward of the Street at $1.20 a share.
HP Enterprise CEO Antonio Neri stated in a press release that the third quarter outcomes had been “marked by strong execution and sequential growth … navigating through the pandemic and planning for a post-Covid world have increased customers’ needs for as-a-service offerings, secure connectivity, remote work capabilities and analytics to unlock insights from data that are aligned to our strategy. We see a tremendous opportunity to help our customers drive digital transformations as they continue to adapt to operate in a new world.”
In an interview with Barron’s, Neri famous that the corporate was in a position to scale back its backlog by greater than $500 million within the quarter, and will return to normalized backlog by the tip of the present quarter. He additionally famous that a lot of the present backlog displays excessive efficiency computing {hardware} that has been constructed and shipped however not but put in, given restrictions on the flexibility of the corporate to work on-site for prolonged durations at buyer websites.
The corporate stated its “intelligent edge” enterprise was down 12% within the quarter. The compute section was flat, whereas excessive efficiency laptop and mission vital techniques income was up 3%. Storage income was down 10%, and advisory {and professional} companies was down 9%. Monetary companies income was down 9%.
In late buying and selling, HP Enterprise shares had been up practically 6%, to $9.88.
Write to Eric J. Savitz at eric.savitz@barrons.com
