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

  • Uber hired exec despite warnings he had Waymo technology

    Economic CTV News
    SAN FRANCISCO -- Uber acknowledged hiring a former Google engineer - now accused of stealing self-driving car technology - despite having received warnings that he was still carrying around some of his former employer's property. Source
  • Asian stocks flat as weak oil prices unnerve investors

    Economic CTV News
    HONG KONG - Asian shares are ending the week on a subdued note with most indexes little changed Friday as the price of oil halted its decline, while still hovering near its lowest level in almost a year. Source
  • Breweries claim Alberta's beer tax system is unconstitutional

    Economic CTV News
    CALGARY - Lawyers for two breweries challenged the constitutionality of Alberta's tax system on small breweries Thursday, arguing the system unfairly favours producers in the province. Toronto-based Steam Whistle Brewing and Saskatoon-based Great Western Brewing Co. Source
  • Biggest U.S. banks strong enough to withstand recession: Fed

    Economic CTV News
    In this Thursday, Nov. 17, 2016, file photo, Federal Reserve Chair Janet Yellen testifies on Capitol Hill in Washington, before the Joint Economic Committee. (AP Photo/Susan Walsh, File) Source
  • Postmedia selling Infomart division

    Economic CBC News
    Postmedia Network Canada Corp. has signed a deal to sell Infomart, its media monitoring division, to Meltwater News Canada Inc. for $38.25 million. The cash-strapped media company says net proceeds from the sale will be used to repay debt. Source
  • A new platform for Whole Foods? How deal could upend grocery

    Economic CTV News
    NEW YORK -- Seeing Whole Foods products first in Amazon searches? Breezing through the grocer's stores with an app that scans affordable fruits and seafood? Those are among the possible scenarios that unnerved the food industry last week, when Amazon announced a $13.7 billion megadeal to acquire Whole Foods. Source
  • Foreign home buyers surge 37 per cent in Montreal on growth in Chinese purchases

    Economic CTV News
    MONTREAL -- Canada's federal housing agency says the number of foreign buyers in the Montreal area surged by 37 per cent in the first four months of the year. The 236 purchases by foreigners accounted for 1.8 per cent of all real estate transactions from January to April, the Canada Mortgage and Housing Corp. Source
  • Qatar Airways seeks 10% stake in American Airlines

    Economic CBC News
    State-owned Qatar Airways is attempting to buy 10 per cent of American Airlines, a surprising move that would trigger an antitrust review by the U.S. government and carry political and trade-policy implications. American Airlines Group Inc. Source
  • Boeing plays down Bombardier dispute, still hopes to sell fighter jets to Canada

    Economic CTV News
    OTTAWA - A senior Boeing official says the U.S. aerospace giant's trade dispute with Montreal-based rival Bombardier is a "company-to-company issue." And Leanne Caret, the head of Boeing's massive defence, security and space division, still hopes to sell Super Hornet fighter jets to Canada. Source
  • Full list of 59 Sears Canada stores slated to close

    Economic CTV News
    Sears Canada will be closing stores in every province except Prince Edward Island, as the retailer slashes 2,900 jobs amid a major restructuring effort. Sears filed for court protection from creditors on Thursday, before announcing that it will close 20 full-line locations, 15 Sears Home stores, 10 outlet stores and 14 Sears Hometown locations. Source