HPE surged by 19% in after-hours trading after beating earnings and revenue estimates
Hewlett Packard Enterprise (HPE) reported its fiscal 1Q18 (quarter ended January 2018) financial results on Thursday, February 22. The company’s stock surged 19% in after-hours trading, as it beat both earnings and revenue estimates.
HPE’s revenue for fiscal 1Q18 stood at $7.7 billion, 11% higher than in the same quarter last year. Analysts were projecting revenues of $7.1 billion. Excluding one-time items, the company posted earnings of $0.34 per share compared to Wall Street estimates of $0.22 per share. HPE recorded profits of $0.28 per share on an adjusted basis in fiscal 1Q17. Including the one-time US tax code overhaul effect, the company recorded earnings of $0.89 per share, or $1.4 billion.
Why HPE’s stock prices gained 19% in after-hours trading on Thursday
HPE saw robust growth in servers and data center networking segments, which analysts were expecting to be a drag on the company’s revenue growth. The two segments grew by 24% and 27%, respectively, from the same quarter last year.
The company also announced a rise in dividends by 50% in fiscal 3Q18 and share buybacks worth over $5.5 billion by the end of fiscal 2019. The company’s shares had risen 13.9% in the last 12 months as of the close of trade on Thursday.