Hewlett Packard Enterprise guidance falls amid softer networking demand
Investing.com | Author Yasin Ebrahim
Published Feb 29, 2024 04:34PM ET
Updated Mar 01, 2024 04:18AM ET
Investing.com -- Hewlett Packard Enterprise has reported softer-than-expected guidance and first-quarter revenue that fell short of estimates as headwinds in its networking business weighed.
Shares in Hewlett Packard Enterprise (NYSE:HPE) dipped in premarket U.S. trading on Friday.
In the three months ended Jan. 31, the company reported adjusted earnings of $0.48 per diluted share on revenue of $6.76 billion, compared with estimates of $0.45 and $7.10B, respectively. The revenue miss comes amid challenges brought by "the softening of the networking market and GPU deal timing," the company said.
For the second quarter, the company forecast adjusted earnings per share (EPS) in a range of $0.36 to $0.41 on revenue between $6.6B to $7.0B. Wall Street was looking for EPS of $0.45 and revenue of $7.13B.
However, analysts at Morgan Stanley said they saw signs of "stabilization" in storage and server demand.
"We could become more encouraged if there are signs of the networking demand resuming, or a pickup in revenue of [artificial intelligence] servers," the analysts said in a note to clients.
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