HPE tops Q1 estimates, raises guidance for fiscal year
Summary
Hewlett Packard Enterprise delivered first quarter financial results that topped Wall Street expectations, but revenue was down or flat across most of its key business units. However, the company raised its earnings guidance for the fiscal year and noted solid growth in recurring revenue as part of its pivot to as-a-service. The enterprise software player reported first quarter net income of $223 million, or 17 cents a share, on revenue of $6.8 billion, down 2% from a year ago. Meanwhile, High Performance Compute & Mission Critical Systems (HPC & MCS) revenue was $762 million, down 9% from the prior-year period. "Our revenue exceeded our outlook and we significantly expanded our gross and operating margins to drive strong profitability across most of our businesses," said HPE chief executive Antonio Neri.