Hewlett Packard Enterprise has been able to present very positive quarterly figures for the fourth quarter of its fiscal year. The figures exceeded analysts’ expectations, both in terms of profit and turnover. The good figures are due to an increased demand for the network products for data centres and storage products, says Reuters.
The company’s turnover increased by 3.7 percent to 7.95 billion dollars. That’s over $7.84 billion analysts expected. The company’s earnings amounted to 45 cents per share, against expectations of 43 cents per share.
The company’s annual sales have fallen since the split-up of Hewlett Packard in 2015. The company’s main server business is struggling with business customers who are increasingly buying unbranded servers because they are much cheaper.
Last year, the company therefore announced that it would reduce costs as part of its HPE Next initiative. The aim was to achieve cost savings of $1.5 billion over the next three years. For the current quarter, the company, which competes with Amazon and Microsoft, among others, announced an expected profit of 33 to 37 cents per share. That’s in line with Wall Street’s expectations.
The Hybrid IT division, which produces servers, storage and networking products for data centres, grew 4.6 percent to $6.44 billion. That’s well above the expectations of analysts, who came out at $6.3 billion. The department’s net loss was $757 million, or $52 cents per share. Last year, the company still had a profit of 524 million dollars or 32 cents per share.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.