HPE saw its share price plunge after disappointing forecasts for the upcoming fourth quarter. HP saw its share price fall following the release of its quarterly results.
In the third quarter of 2023, HPE managed to grow its revenue by 1 percent in comparison with the same quarter in 2022. The tech giant posted revenue of 6.4 billion euros ($7 billion) in the third quarter of this year. Net profit came to $464 billion.
Most of the growth for HPE in the third quarter of 2023 came from the Intelligent Edge business unit. This aligns with HPE’s strategy to sell less traditional hardware, such as servers and storage. HPE is now focusing more on providing solutions that enable companies to collect and process data without transferring it to a remote data center.
Disappointing fourth quarter
The poor reaction of the stock market came as a result of HPE’s forecasts for the fourth quarter of this year. The tech giant expects between $7.2 billion and $7.5 billion in revenue. This would put the average slightly below the $7.49 billion expected by stock market experts.
Stock market experts were additionally disappointed in the tech giant’s results because competitor Arista Networks did recently present robust results for its second quarter, partly due to a strong commitment to supporting AI workloads.
HP also down
Not only did HPE see its shares fall, but its former sister company HP also suffered following the release of its quarterly results for the third quarter of this year. In this quarter, HP posted revenues of 12.1 billion euros ($13.2 billion), 10 percent under the revenues in the same quarter of 2022.
These revenues were also below Wall Street expectations. HP is suffering greatly from the continuing disappointing PC market, commented HP CEO Enrique Lores.