Hewlett Packard Enterprise Co (NYSE:HPE) promised jam tomorrow (again) after a disappointing set of quarterly figures.
The company, which is spinning off its software business into new company formed with London-listed software company Micro Focus International PLC (LON:MCRO), saw its shares slide more than 7% in pre-market trading after it slashed its earnings outlook.
The struggling technology company reported net income of US$267mln on sales of US$11.41bn for the first quarter of the current financial year.
Net income equated to 16 cents a share, but after adjusting for the group’s incessant restructuring and other one-off costs, the earnings per share clocked in at 45 cents, a shade above the median forecast of 44 cents among the analyst community.
Full year earnings per share (EPS) are now expected to fall within a range running from 60 to 70 cents on a generally accepted accounting principles (GAAP) basis, or US$1.88 to US$1.98 on an adjusted basis.
Previously the company had tipped the wink to the market to expect GAAP EPS of 72 to 82 cents a share and adjusted EPS of US$2 to US$2.10.
HPE attributed the more pessimistic outlook to a number of things: ”increased pressure from foreign exchange movements, higher commodities pricing, and some near-term execution issues.”
Meanwhile, Micro Focus took the opportunity to put out a trading update to coincide with the update from HPE.
It restated full-year guidance for revenue, which could be anywhere from flat to 2% lower year-on-year on a constant currency basis.
It said in the third quarter (to the end of January) of its fiscal year sterling had fallen 7.8% against the US dollar compared to the same period the year before, while the euro had slipped 4.7% and the Japanese yen 8.1%.
Story by ProactiveInvestors