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Pressures Remain on Hewlett Packard Enterprise

Results were below expectations, but the no-moat firm increased its EPS guidance for 2019.

Pressures Remain on Hewlett Packard Enterprise
Mentioned:

Mark Cash: No-moat HPE reported first-quarter revenue below our expectations, but the company issued increased guidance for its 2019 earnings per share by $0.15 on a GAAP basis.

The company posted strong growth in nascent technology areas like edge computing, hyperconverged infrastructure, and all-flash array storage. As indicated by its lower revenue and margin profile expansion, the company is attempting to pivot away from lower cost sales, especially to the Tier 1 cloud service providers. 

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Mark Cash does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.