Hewlett Packard Q2 Profit Beats Wall Street, Lifts FY Outlook

(RTTNews) - Hewlett Packard Enterprise (HPE) Thursday said its profit for the second quarter trumped Wall Street estimates, however, revenues fell short of expectations. Moving ahead, the company lifted its full-year earnings outlook.

Palo Alto, California-based Hewlett reported second-quarter profit of $419 million or $0.30 per share, down from $778 million or $0.49 per share last year.

On an adjusted basis, earnings were $0.42 per share, up from $0.32 per share last year. On average, 19 analysts polled by Thomson Reuters estimated earnings of $0.37 per share for the quarter.

Revenues for the quarter rose 4.3% to $7.15 billion from $7.47 billion last year. Analysts had a consensus revenue estimate of $7.40 billion for the quarter.

"In Q2 we demonstrated traction in critical areas for our customers that delivered strong margin improvement, EPS above our outlook and solid cash flow," said CEO Antonio Neri.

Looking forward to the third quarter, Hewlett Packard estimates adjusted earnings of $0.29 to $0.33 per share. For fiscal year 2019, Hewlett Packard Enterprise now estimates adjusted earnings of $1.62 to $1.72 per share, up from previous guidance of $1.56 to $1.66 per share. Analysts currently estimate earnings of $0.42 per share and $1.65 per share for the third quarter and full year, respectively.

HPE closed Thursday's trading at $14.32, down $0.39 or 2.65%, on the NYSE. The stock, however, gained $0.08 or 0.56% in the after-hours trade.