HPE’s revenue beats estimates
Hewlett Packard Enterprise’s (HPE) revenue of $7.95 billion beat analysts’ estimate of $7.84 billion in the fourth quarter of fiscal 2018, and increased sequentially for a second consecutive quarter. It reported revenue of $7.76 billion in the third quarter of fiscal 2018, $7.5 billion in the second quarter, and $7.7 billion in fiscal 2018’s first quarter and fiscal 2017’s fourth quarter.
In the fourth quarter, HPE’s revenue grew 3.7% YoY (year-over-year), and 3% excluding currency effects. The revenue growth was driven by intelligent edge and hybrid IT revenue increasing YoY, and partially offset by financial service revenue.
In fiscal 2018, its annual revenue rose 7% YoY to $30.9 billion, and approximately 5% YoY excluding currency effects. Analysts had expected revenue of $30.7 billion in fiscal 2018, and they expect revenue of $30.96 billion in fiscal 2019. According to Reuters, HPE has been struggling to grow its mainstay server business as corporate customers opt for lower-cost, non-branded servers.
HP (HPQ), Cisco Systems (CSCO), and Juniper Networks (JNPR) also posted upbeat revenue in their recently reported quarters. HP’s revenue of $15.4 billion beat analysts’ estimate of $15.1 billion in the fourth quarter of fiscal 2018, and Cisco’s revenue of $13.07 billion beat their estimate of $12.86 billion in the first quarter of fiscal 2019. Juniper’s revenue of $1.18 billion exceeded analysts’ estimate by 0.5% in the third quarter of 2018.