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Hewlett Packard Enterprise slashes earnings outlook

Friday, February 24, 2017 6:08
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(Before It's News)

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



Source: http://www.proactiveinvestors.com/companies/news/173707/hewlett-packard-enterprise-slashes-earnings-outlook-173707.html

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