Hewlett Packard Enterprise reports £116.99 million of net earnings in Q4

Written by: Wajeeh Khan
December 1, 2020
  • Hewlett Packard Enterprise reports £116.99 million of net earnings in Q4.
  • The U.S. company says revenue remained flat on a year over year basis.
  • HPE to move its corporate headquarters from San Jose to Houston.

Hewlett Packard Enterprise Co. (NYSE: HPE) published its earnings report for the fiscal fourth quarter on Tuesday that came in better than what analysts had anticipated. The company also said that it was moving its corporate headquarters from San Jose to Houston.

HPE was seen less than 1% down in after-hours trading on Tuesday. On a year to date basis, the company shares are currently 30% down in the stock market despite a close to 45% recovery since March due to COVID-19 disruptions. Learn more about why do prices rise and fall in the stock market.

HPE Q4 financial results versus analysts’ estimates

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HPE said that its non-GAAP profits in the fourth quarter printed at 27.57 pence per share. In comparison, experts had forecast a lower 25.33 pence per share of non-GAAP profits for HPE in the recent quarter. In the prior quarter (Q3), HPE had posted 23.84 pence per share of non-GAAP earnings, as per the report published in the last week of August.

The American multinational reported £116.99 million of net earnings in Q4 that translate to 8.94 pence per share. In comparison, its net earnings in the same quarter last year were capped at a much lower £6.71 million or 0.75 pence per share.

HPE also said on Tuesday that its revenue remained flat on a year over year basis in the recent quarter at £5.37 billion. According to FactSet, experts had forecast the information technology company to post £5.20 billion of revenue in the fourth quarter. Their estimate for per-share earnings stood at a lower 33.53 pence per share.

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CFO Tarek Robbiati’s comments on Tuesday

CFO Tarek Robbiati of HPE commented on the financial report on Tuesday and said:

“We’ve returned to pre-pandemic revenue, which makes this a fantastic quarter.”

CFO Robbiati also highlighted on Tuesday that in San Jose, HPE intends to keep a strategic hub and that the move to Texas was expected to be gradual.

The COVID-19 crisis has so far infected more than 14 million people in the United States and caused over a quarter million deaths. In separate news from the U.S., Salesforce also reported its quarterly financial results on Tuesday.

HPE performed fairly upbeat in the stock market last year with an annual gain of more than 20%. At the time of writing, it is valued at £10.74 billion.