HPE lifts revenues 3% in Q3, lowers FY guidance after software ops spin-off

News General Global 6 SEP 2017
HPE lifts revenues 3% in Q3, lowers FY guidance after software ops spin-off
HP Enterprise said revenues for its fiscal third quarter to end July lifted 3 percent from the year before to USD 8.2 billion. The figure is pro forma for the spin-off of its enterprise services business into DCX. Adjusted for other divestments and currency effects, revenues rose 6 percent from the year earlier. The net profit passed expectations, though it fell USD 0.10 per diluted share from 1.32. Adjusted diluted EPS went lower to USD 0.31 from 0.40. The net profit sank 90 percent to USD 0.2 million from 2.5 million.

Enterprise group revenues advanced 3 percent to USD 6.8 billion, with an operating margin of 9.3 percent. The figure includes an increase of 16 percent in networking equipment, a decline of 1 percent in servers and a rise of 11 percent in storage products. Software revenue slipped 3 percent to USD 718 million, with an operating margin of 24.9 percent. Here, revenues went up 2 percent at license, fell 2 percent at support, slid 23 percent at professional services and went 7 percent higher at software-as-a-service (SaaS).

Looking towards the fourth quarter, HPE is guiding for diluted net EPS at USD 0.00 to 0.04 and adjusted diluted net EPS at USD 0.26-0.30. For the full year, the company has adjusted its forecast to take in consideration its completed software spin-off. With an expected impact on diluted net EPS of USD 0.13, the loss per share is now seen at USD 0.11-0.07 and the adjusted diluted net EPS at USD 1.36-1.40.

The company separately announced the acquisition of cloud specialist CTP.

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