HPE's stock slides after a steep decline in revenue
By Jon Swartz
Hewlett Packard Enterprise Co.'s stock fell 4% in after-hours trading Thursday after the company posted a steep drop in quarterly revenue but improved earnings.
"HPE drove momentum in annualized revenue run rate and gross margins despite challenges brought by the softening of the networking market and GPU deal timing," HPE Chief Financial Officer Marie Myers said in an interview.
HPE (HPE) reported fiscal first-quarter net earnings of $387 million, or 29 cents a share, compared with net earnings of $501 million, or 38 cents a share, in the same quarter a year ago. Adjusted earnings were 48 cents a share.
The company's sales plunged 14% to $6.76 billion from $7.8 billion in the year-ago quarter.
Analysts surveyed by FactSet had expected on average net income of 45 cents a share on revenue of $7.09 billion.
HPE provided second-quarter sales guidance of $6.6 billion to $7 billion, while FactSet analysts are forecasting $7.1 billion.
Shares of HPE have sunk 2% over the past year, while the broader S&P 500 index SPX has increased 28%.
-Jon Swartz
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-29-24 2018ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?
-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?
-
3 Dividend Stocks for May 2024
-
Amgen Earnings: Obesity Drug Update Is Highly Encouraging
-
What’s Going on With Apple, Tesla, and Alphabet?
-
Apple Earnings: A Weak 2024, but Optimism for 2025
-
4 Utility Stocks to Play the AI Data Center Boom