HPE sees promising future and double-digit growth in AI
By Jon Swartz
Hewlett Packard Enterprise Co. dipped slightly in extended trading Tuesday after the computing giant reported quarterly results that were in line with analysts' estimates and touted promising AI sales.
HPE (HPE) reported fiscal fourth-quarter net earnings of $642 million, or 49 cents a share, compared with a net loss of $304 million, or 23 cents a share, in the same quarter a year ago. Adjusted earnings were 52 cents a share.
Net revenue declined 7% to $7.35 billion from $7.87 billion a year earlier.
"We closed fiscal year 2023 strong, within an uneven IT market," interim HPE Chief Financial Officer Jeremy Cox said in an interview. "We see promising indicators of continued demand in the areas of the market we are prioritizing, especially in AI. We see double-digit growth over the next three years."
High Performance Computing & Artificial Intelligence ("HPC & AI") revenue jumped 37% to $1.2 billion from the same quarter a year ago.
Analysts surveyed by FactSet had expected on average adjusted net earnings of 50 cents a share on revenue of $7.4 billion.
HPE offered first-quarter revenue guidance of between $6.9 billion and $7.3 billion. FactSet analysts are projecting $7.23 billion.
Shares of HPE have dipped 2.7% this year. The broader S&P 500 index SPX is up 19%.
HPE's board also declared a regular cash dividend of 13 cents a share on the company's common stock, payable Jan. 11, 2024.
-Jon Swartz
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(END) Dow Jones Newswires
11-28-23 1609ET
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