Hewlett Packard Shares Climb On Better-Than-Expected Q2 Results

Loading… Loading… Hewlett Packard Enterprise Co HPE reported better-than-expected second-quarter financial results after the bell Tuesday. Here’s a look at the highlights from the report . The Details: Hewlett Packard Enterprise reported quarterly earnings of 42 cents per share, which beat the analyst consensus estimate of 39 cents by 7.69%. Quarterly sales clocked in at $7.2 billion which beat the analyst consensus estimate of $6.823 billion by 5.53% and represents growth of 3.26% over sales of $6.973 billion from the same period last year. Server revenue was $3.9 billion, up 18% from the prior-year period, with 11% operating profit margin, compared to 14.4% from the prior-year period. Intelligent Edge revenue was $1.1 billion, down 19% from the prior-year period, with 21.8% operating profit margin, compared to 24.7% in the prior-year period. Hybrid Cloud revenue was $1.3 billion, down 8% from the prior-year period, with 0.8% operating profit margin, compared to 1.9% from the prior-year period. Financial Services revenue was $867 million, up 1% from the prior-year period, with 9.3% operating profit margin, compared to 8.9% from the prior-year period. Net portfolio assets of $13.2 billion, down 1.1% from the prior-year period. “HPE delivered very solid results in Q2, exceeding revenue and non-GAAP EPS guidance. AI systems revenue more than doubled from the prior quarter, driven by our strong order book and better conversion from our supply chain,” said Antonio Neri , president and CEO of Hewlett Packard Enterprise. “Our deep expertise in designing, manufacturing, and running AI systems at scale fueled growth of cumulative AI systems orders to $4.6 billion, with enterprise AI orders representing more than 15%. HPE’s AI advantage, increased HPE GreenLake adoption, and leading infrastructure portfolio, as well as an improved supply chain environment, set us up very well to deliver a strong second half.” Outlook: Hewlett Packard Enterprise sees third-quarter earnings of between 43 cents and 48 cents per share, versus the 47-cent estimate and third-quarter revenue in a range of $7.4 billion to $7.8 billion, versus the $7.46 billion estimate. The company sees full-year earnings between $1.85 and $1.95 per share, versus the $1.88 per share estimate. HPE Price Action: According to Benzinga Pro , Hewlett Packard shares are up 9.86% after-hours at $19.33 at the time of publication Tuesday. Related News: What’s Going On With Bitcoin-Miner TeraWulf’s Stock? Photo: Shutterstock