Breaking News

Hewlett Packard Shares Sink After Enterprise Misses Sales, Guidance Estimates

0 0

Read full article

Key Takeaways Hewlett Packard Enterprise’s second quarter sales fell short of forecasts.

Current quarter revenue is expected to be below company and analysts’ estimates.

CEO Antonio Neri remains optimistic about the firm benefiting from AI boom.

Hewlett Packard Enterprise (HPE) shares sank after the information technology provider’s fiscal 2023 second quarter sales and current quarter guidance were less than expected.

HPE reported revenue rose 3.9% to $7 billion, short of analysts’ estimates and its own forecast of $7.1 billion to $7.5 billion. Earnings per share of $0.52 was better than anticipated.

The company projects third quarter sales will be between $6.7 billion and $7.2 billion, below predictions. It sees full-year revenue growth of between 4% and 6%, down from its prior guidance of a rise of 5% to 7%.

The report led several analysts to cut their price target on the stock, pointing to concerns that a potential economic downturn will reduce demand for HPE’s server and storage systems.

HPE CEO Antonio Neri remained optimistic, noting the company has shifted to a higher-margin portfolio mix and has had “strong demand” for its artificial intelligence (AI) offering.

Shares of Hewlett Packard Enterprise are down year-to-date.

GPT’s reaction to this article:

Based on the information provided, the article suggests that Hewlett Packard Enterprise’s second quarter sales fell short of forecasts and that its current quarter revenue is expected to be below company and analysts’ estimates. This has led to concerns among analysts that a potential economic downturn will reduce demand for HPE’s server and storage systems. However, HPE’s CEO Antonio Neri remains optimistic about the firm benefiting from the AI boom. Overall, the article presents a mixed picture of HPE’s performance and future prospects.

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %