HP Enterprise shares jump after the bell as it tops expectation

Courtney Goldsmith
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Hewlett-Packard To Cut 9,000 Positions
HP beat expectations on revenue, but net income dropped (Source: Getty)

Hewlett Packard Enterprise (HP) revealed better than expected quarterly revenue today as sales for its networking equipment gave it a boost.

The data centre technology firm reported a 2.5 per cent rise in revenue to $8.21bn (£6.30bn) in the third quarter ended 31 July. Analysts had expected $7.49bn on average.

Shares in California-based HP rose 5.27 per cent to $14.78 after the bell.

Read more: Micro Focus shares surge on news of deal with HP Enterprise

However, the company’s net income tumbled to $165m, or 10 cents per share, for the quarter from $2.27bn, or $1.32 per share, the previous year.

Net income was partly impacted by the spinoffs of HP’s enterprise services business with Computer Sciences Corp and software business with Micro Focus International, HP said.

The tech group said it expected current quarter profit to sit between 26 cents per share and 30 cents per share, lower than analysts predicted.

Read more: HP to be split in two to battle younger rivals

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