(Adds details, updates shares)
Nov 22 Hewlett Packard Enterprise Co,
the corporate hardware and enterprise software business of
Hewlett-Packard Co, forecast a current-quarter adjusted profit
largely below analysts' estimates, sending its shares down 1.9
percent after the bell.
HPE said it expects first-quarter adjusted profit between 42
cents and 46 cents. Analysts on average had expected profit of
46 cents per share according to Thomson Reuters I/B/E/S.
However, the company did beat analyst estimates for the
fourth-quarter ended Oct. 31 by 1 cent with earnings of 61 cents
per share, excluding items.
Hewlett Packard Enterprise (HPE) also reported a 7.2 percent
fall in revenue to $12.48 billion in its first year as a
stand-alone company, hurt by weak demand for storage and
Competition has been stiff as more and more businesses move
to the cloud and boost demand for cloud-based services.
This has forced some traditional technology companies such
as HPE to change strategies and focus their efforts on
fast-growing hardware businesses such as servers, networking and
data storage hardware for the cloud.
Under Chief Executive Officer Meg Whitman, HPE has sold off
most of its software businesses, including its computing
services unit, since the company spun off from Hewlett-Packard
Co in 2015.
Still, revenue in its enterprise group, the company's
biggest business that offers servers, storage and networking
services, fell 9.2 percent to $6.68 billion in the fourth
Larger companies such as Cisco Systems Inc and Dell
EMC have well established cloud hardware businesses to compete
Networking revenue slumped nearly 34 percent, hurt in part
by a slowdown in spending by the government in educational
institutions that hit demand for both wireless and switching
Separately, HP Inc, the legacy printing business of
Hewlett-Packard Co, forecast an adjusted profit for the current
quarter that was largely below analysts' estimates due to waning
demand for its printers.
HP Inc's shares were down nearly 2.2 percent after the bell.
(Reporting by Rishika Sadam and Sruthi Shankar in Bengaluru;
Editing by Maju Samuel and Lisa Shumaker)