HP Enterprise shares surge after strong earnings report

SAN FRANCISCO -- Hewlett Packard Enterprise's stock rose more than 14 per cent on Friday, a day after the commercial technology vendor reported solid earnings in its first quarter as an independent company.

See Full Article

Analysts said the results were better than expected, showing the new company can increase sales and become more profitable after spinning off from the old Hewlett-Packard last fall.

Hewlett Packard Enterprise Co. sells commercial tech products and services, while another spin-off, HP Inc., is focused on personal computers and printers.

While total sales were down 3 per cent from a year ago, HP Enterprise said revenue from computer servers, data storage systems and networking gear all increased after adjusting for currency fluctuations and one-time costs. All told, computer hardware contributed more than half of the company's $12.7 billion in revenue for the quarter that ended Jan. 31.

The company also reported revenue from technology services was flat, after excluding the effects of a strong dollar. But analysts said the company should be able to increase profits from that segment in future quarters, as CEO Meg Whitman carries out previously announced plans to cut staffing and move some jobs overseas.

The results show "operating margins improved and we believe it will likely continue, due to improved (an) business mix as well as restructuring benefits," said Wells Fargo analyst Maynard Um in a note to clients Friday.

Credit Suisse analysts said the results provide "continuing evidence" of a turnaround for the company, after several years in which the old Hewlett-Packard struggled with internal problems and changes in tech industry buying patterns.

HP Inc., the other spinoff, disappointed investors last week by reporting a 12 per cent revenue drop amid signs that PC and printer sales are still sluggish.

Shares in HP Enterprise, which is based in Palo Alto, California, rose $1.94 to $15.55 in afternoon trading.



Advertisements

Latest Economic News

  • Investor Warren Buffett says good deals tough to find

    Economic CTV News
    In this Oct. 3, 2017, file photo, investor Warren Buffett gestures on stage during a conversation with CNBC's Becky Quick, at a national conference sponsored by the Purpose Built Communities group that Buffett supports, in Omaha, Neb. Source
  • Berkshire Hathaway says tax law gives it US$29B boost in 4Q

    Economic CTV News
    OMAHA, Neb. -- Berkshire Hathaway's fourth-quarter profit more than quadrupled as it received a US$29 billion boost from the new tax law that easily offset any weakness in the company's businesses. Berkshire said Saturday it earned US$32.6 billion, or US$13.19 per Class B share, in the fourth quarter because of the tax law changes. Source
  • Ontario restaurant price hikes boost food inflation after minimum wage increase

    Economic CTV News
    Ontario restaurants hiking menu prices after the province raised its minimum wage this year were likely responsible for pushing January food inflation to its highest annualized increase in nearly two years. Overall food prices were 2.3 per cent higher last month compared with January 2017, according to Statistics Canada. Source
  • Supplier to NHL's Calgary Flames breathes again as B.C. wine ban suspended

    Economic CTV News
    VICTORIA -- The operators of a small British Columbia winery that landed a big contract to be the official wine of the National Hockey League's Calgary Flames are relieved their Cabernet Merlot and Pinot Gris are no longer caught in a face off between two provinces. Source
  • NRA faces corporate backlash after latest school shooting

    Economic CTV News
    NEW YORK -- The National Rifle Association is facing a corporate backlash as companies take a closer look at their investments, co-branding deals and other ties to the gun industry following the latest school massacre. Source
  • 'The not so golden years' — a quarter of retired Canadians in debt, survey suggests

    Economic CBC News
    A "worry-free retirement" may be a thing of the past, according to a new Sun Life Financial survey, which finds that a quarter of retired Canadian are in debt in their golden years. About 25 per cent of the 750 Canadians polled between the ages of 55 to 80 years for the Sun Life Financial Barometer said they have debt that ranges from mortgages to car payments. Source
  • Couillard says he is open to advancing Montreal's subway contract to Bombardier

    Economic CTV News
    Quebec Premier Philippe Couillard is suggesting he's open to giving Bombardier a contract to replace Montreal's subway cars in order to stave off potential job losses at the company. Couillard said today during an economic mission to Washington D.C. Source
  • Pension fund manager OMERS earns 11.5 per cent return after all expenses in 2017

    Economic CTV News
    TORONTO -- Pension fund manager OMERS earned an investment return of 11.5 per cent after all expenses last year, topping the 10.3 per cent result it posted in 2016. The defined-benefit pension plan for Ontario's municipal employees said all of its major asset classes performed well for the year. Source
  • Ottawa vows legislation allowing firms to settle corporate corruption

    Economic CTV News
    OTTAWA -- The Canadian government is vowing to introduce legislation for corporate wrongdoing that could help SNC-Lavalin Group Inc. address criminal charges. The government says deferred prosecution agreements (DPA), which were called for in public consultations last fall, will be another tool used by judges to hold companies accountable. Source
  • TD Bank stops allowing customers to use credit cards to buy cryptocurrency

    Economic CTV News
    TORONTO -- TD Bank says it is taking a pause on allowing customers to use its credit cards to buy cryptocurrency. The big bank says it made the decision to conduct a review and assessment of the evolving market. Source