Hewlett Packard Enterprise on Thursday reported fiscal first-quarter earnings that fell from a year earlier but topped lowered expectations for HPE stock. The company's guidance missed consensus estimates.
The maker of computer servers, networking equipment and data storage systems reported earnings after the market close. For the January quarter, HPE earnings were 48 cents a share, down 24% from a year earlier.
Revenue fell 14% to $6.8 billion, the company said.
Analysts expected HPE earnings of 45 cents a share on sales of $7.09 billion for the period ended Jan. 31. A year earlier, HPE earnings were 63 cents a share on sales of $7.8 billion.
HPE Stock: Outlook Misses
For the current quarter ending in April, the rival of Dell Technologies predicted earnings in a range of 36 cents to 41 cents vs. analysts consensus estimate of 45 cents. HPE said it expects revenue of $6.8 billion vs. estimates of $7.12 billion.
HPE stock fell more than 2% to 14.87 in extended trading on the stock market today.
"Despite a mixed quarter, I remain very confident that our focus on customer-centric innovation and our track record of operational discipline will allow us to capitalize on the significant market opportunities in AI as well as across edge and hybrid cloud and to deliver value to our shareholders," said Chief Executive Antonio Neri in a statement.
Shares were down 11% thus far in 2024 prior to the HPE earnings report.
Heading into the HPE earnings report, the tech stock owned a Relative Strength Rating of 23 out of a best-possible 99, according to IBD Stock Checkup.
In early 2024, HPE agreed to buy Juniper Networks for $14 billion in cash.
HPE expects the deal to be earnings and free cash flow accretive in the first year post-close. The deal is expected to close in late 2024 or early 2025.
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