On Tuesday, Hewlett Packard Enterprise Co beats the estimates of the analysts for the profit and revenue for this quarter for the current fiscal year.
The increase in the revenue was because of the escalation in the demand for its products which comprises of the storage and data centre networking.
Since the split of the company from the Hewlett Packard Co in the year 2015, the sales of the company witnessed a downfall.
The mainstay business of the company has been struggling because the corporate customers have been purchasing the non-branded servers which are much less in price.
As a part of the company’s HPE Next initiative which is harmonized in response to the above scenario and was announced last year, it is now cutting down costs. The aim is drive the cost savings to be $1.5 billion in the coming three years.
The revenue generated from the Hybrid IT division increased by 4.6 percent accounting to $6.44 billion. The IT division houses servers along with the storage and data centre networking products. The figures were retrieved from the Refinitiv and are according to the IBES data.
This value surpasses the estimates of the analysts which were expecting it to be $6.30 billion.
The increase from the estimates was by $0.14 billion.
In the fourth quarter of the current fiscal year, the net loss of the company was of 52 cents per share which accounts to $757 million. The fourth quarter ended on the 31st of October.
The profit made by the company in the previous fiscal year was of $524 million which accounted to 32 cents per share.
The revenue of HPE increased by 3.7 percent that is equivalent to $7.95 billion. This figure is higher by $0.11 billion from the estimates of the analysts who estimates it to be $7.84 billion.
Source: Reuters, KFGO