Hewlett Packard Enterprise recently announced its fiscal first-quarter results, revealing a decline in revenue attributed to the server and hybrid cloud business units. The edge-to-cloud company reported a net profit of $387 million or 29 cents per share for the three months ending January 31. This is a decrease from $501 million or 38 cents per share during the same period the previous year.
Financial Overview
After adjusting for one-time items, earnings per share stood at 48 cents, surpassing analysts’ expectations of 45 cents. However, revenue dropped by approximately 13% to $6.76 billion, missing the anticipated $7.09 billion. Despite challenges faced by the networking market softening and graphic processing unit deal timing, finance chief Marie Myers noted that HPE drove momentum in annualized revenue run-rate and gross margins during the first quarter.
Future Projections
Looking ahead, the company foresees a further profit decrease in the second quarter, with anticipated earnings per share ranging from 20 to 25 cents—below the forecasted 40 cents per share. For fiscal year 2024, HPE predicts revenue to remain flat or increase by up to 2%, with earnings per share expected to fall within the $1.81 to $1.91 range—an improvement from the previous year’s $1.54 per share.