Hewlett Packard (HPE) Q1 Earnings Top, Revenues Miss Mark
Zacks Investment Research | Mar 03, 2020 09:43PM ET
Hewlett Packard Enterprise Company (NYSE:HPE) delivered first-quarter fiscal 2020 non-GAAP earnings of 44 cents per share, beating the Zacks Consensus Estimate by a penny. The reported figure also came in higher than the year-ago number of 42 cents. Moreover, non-GAAP earnings came in at the mid-point of management’s guided range of 42–46 cents.
Despite a better-than-expected bottom-line performance, HPE’s shares depreciated nearly 6% in the extended trading session on Mar 3, as revenues missed the consensus mark. Additionally, the company’s downbeat free cash flow outlook for fiscal 2020 turned investors cautious about its near-term performance.
Macroeconomic Factors Hurt Q1 Revenues
HPE reported net revenues of $6.95 billion, which missed the Zacks Consensus Estimate by 3.5% and declined 8% year on year. On a constant currency basis, revenues fell 7%, year over year. The company blamed weaker server demand due to macroeconomic uncertainties, supply constraint, and ongoing shift to cloud computing.
HPE cited that its supply chain has been disrupted due to the Zacks Investment Research
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