HPE server and storage sales slump hits financials

HPE server and storage sales slump hits financials

Sales in HPE's IT business fell 10.5 per cent

Credit: HPE

Hewlett Packard Enterprise (HPE) has missed Wall Street estimates for quarterly revenue, hit by lower demand for its servers and storage products, sending its shares down about 4 per cent in trading after the bell.

Sales in its IT business, which makes storage and data center networking products, fell 10.5 per cent, while its unit that makes wireless network products posted a 6.5 per cent drop.

The company had previously warned of "uneven demand" due to US-China trade tensions.

HPE, known for its computer servers, beat analysts' average estimates for quarterly profit. Excluding items, it earned 49 cents per share, compared to estimates of 46 cents, according to IBES data from Refinitiv.

HPE, whose shares have risen 32 per cent this year, maintained expectations for full-year adjusted profit of between US$1.78 per share and US$1.94 per share.

The company posted net earnings of US$480 million, or 36 cents per share, in the fourth quarter ended Oct. 31, compared with a loss of US$757 million, or 52 cents per share, a year earlier.

HPE's revenue fell 9.2 per cent to US$7.22 billion, below analysts' estimates of US$7.4 billion.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel)

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