Hewlett Packard Enterprise Swings To Q2 Profit

(RTTNews) - Hewlett Packard Enterprise (HPE) Tuesday reported a swing to profit in the second quarter, as revenues grew nearly 10 percent.

Palo Alto, California-based Hewlett reported second-quarter profit of $778 million or $0.49 per share, compared to a loss of $612 million or $0.37 per share last year.

On an adjusted basis, earnings were $536 million or $0.34 per share, up from $287 million or $0.17 per share last year. On average, 24 analysts polled by Thomson Reuters estimate earnings of $0.31 per share for the quarter.

Revenues for the quarter rose to $7.47 billion from $6.81 billion last year. Analysts had a consensus revenue estimate of $7.38 billion for the quarter.

"I am very pleased with our strong performance in Q2," said Antonio Neri, President and CEO, HPE. "We delivered revenue growth in all business segments, expanded overall profitability, completed important milestones in our HPE Next initiative and continued to invest in innovation. I'm confident we will deliver on our annual FY18 outlook."

Looking forward to the third quarter, Hewlett Packard estimates adjusted earnings of $0.35 to $0.39 per share. For fiscal 2018, Hewlett Packard Enterprise now estimates adjusted earnings of $1.40 to $1.50 per share. Analysts currently estimate earnings of $0.36 per share and $1.41 per share for the third quarter and full year, respectively.

HPE closed Tuesday's trading at $17.41, down $0.10 or 0.57%, on the NYSE. The stock, however, gained $0.08 or 0.46% in the after-hours trading.