Antonio Neri, CEO Hewlett Packard Enterprise, speaks during an interview with CNBC upstairs to the Katu New York Stock Exchange (NYSE) in New York, October 20, 2023.
Brendan McDermid | Reuters
Hewlett Packard Enterprise The shares slid 19% on Thursday in prolonged trading, as the producer of the equipment equipment issued a three -month and year -round guidelines that came under the consensus.
Here’s how the company did in the fiscal first quarter compared to the LSEG consensus:
- Earnings per share: 49 cents adjusted to 49 cents
- Income: A $ 7.85 billion is expected compared to $ 7.82 billion
HPE’s income rose 16% compared to the year in the quarter that ended on January 31, according to a statement. The company remained a profit of $ 598 million, or 44 cents per share, compared to $ 387 million, or 29 cents per share, in the same quarter a year earlier. Adapted earnings per share excludes the compensation based on stocks.
“We could have done better,” said CEO Antonio Neri at a conference call with analysts. The company had more than the usual inventory for artificial intelligence servers due to switching to the Blackwell Graphics Processing Units with the following generations with Nvidia.
The AI system gap increased by 29% in the quarter at $ 3.1 billion. The total revenue of the server was $ 4.29 billion.
HPE has been engaged in an extensive discount on the market during the sale of traditional servers during the quarter, said Finance Chief Marie Myers. As a quarter progressed, HPE moved to limit travel and discretionary consumption, she said.
“We expect that price adjustments can adversely affect the growth of the upper line in the short term,” Myers said.
The company announced that it would implement a cost reduction program that includes release in the next 18 months, which will lead to $ 350 million in gross savings to the Fiscal year 2027. About 2,500 employees will be affected, a spokesman said, which will represent about 5% of the workforce when factoring is also in expected exhaustion. At the end of October, HPE hired 61,000 people, according to her latest annual report.
In January, the US Ministry of Justice filed a lawsuit at the Federal District Court to stop HPE in buying Juniper Networks. Hpe announced A proposed $ 14 billion contract in January 2024. The court expects the trial to start in July, the statement said. The deal should be closed until October 2025, HPE said. In December, the company said The transaction would be done in early 2025.
HPE invited to 28 cents for 34 cents adapted to earnings per share for a fiscal second quarter, and revenue came between $ 7.2 billion and $ 7.6 billion. The analysts surveyed by LSEG sought 50 cents per share at $ 7.93 billion in revenue.
For the fiscal year in 2025, HPE sees $ 1.70 to $ 1,90 adapted to earnings per share. Analaysts that surveyed LSEG predicted $ 2.13 per share.
HPE expects to update its prices to reflect higher costs than US tariffs, Neri said, adding that he did not notice any exacerbation of business from the Ministry of Government of Prime Minister Donald Trump.
As of Thursday, HPE shares have been increasing at about 2% 2025 so far, while the S&P 500 index has been reduced by 2%.
WATCH: HPE shares drop more than 10% after mixed earnings, release plans
