Hewlett Packard Enterprise (HPE) 2021 Q2 Financial Performance Review

Hewlett Packard Enterprise Co. (NYSE:HPE) traces its roots back to 1939 when two Stanford University graduates named Bill Hewlett and David Packard founded the company in a Palo Alto garage. Today, it is a leading enterprise technology company, providing its services in servers, storage, and networking areas. Hewlett Packard helps enterprises connect, protect and analyze their data to grow efficiently in this increasingly digital world.

The Texas-based technology company recently announced better-than-expected financial results for the second quarter. HP Enterprise reported earnings of 19 cents per share for the three months ended April 30, compared to 64 cents per share in the year-ago quarter. The company earned 46 cents per share on an adjusted basis, topping the consensus forecast of 42 cents per share.

Revenue for the quarter climbed 11 percent on a year-over-year basis to $6.7 billion, ahead of analysts’ average estimate of $6.6 billion. Compute revenue in the quarter rose 12 percent to $3 billion, storage revenue rose 5 percent to $1.1 billion, while intelligent edge revenue jumped 20 percent to $799 million.

Speaking on the results, CEO Antonio Neri said, “Our disciplined execution on our strategic priorities is positively impacting both top and bottom line performance. We are strengthening our core compute and storage businesses, doubling down in our growth Intelligent Edge and HPC businesses and accelerating our pivot to as-a-service, while also advancing our cloud-first innovation agenda to become the edge-to-cloud platform as-a-service choice for our customers and partners.”

Looking forward, HP Enterprise is anticipating adjusted earnings in the range of 38 cents per share to 44 cents per share for the third quarter, compared to analysts’ average estimate of 43 cents per share.