Technology
Hewlett Packard Enterprise sees downbeat Q2 revenue
Hewlett Packard Enterprise on Thursday forecast second-quarter revenue below Wall Street estimates, as Businesses scale down spending on the server maker's Technology solutions.
Shares of the Spring, Texas based company fell about 3% in extended trading.
An uncertain economy and high interest rates have led clients to cut back on expenses in a push for stronger profitability.
Enterprises are hesitant to sign new contracts, commit to long-term initiatives or take on new Technology partners, although IT spend is expected to increase in 2024, according to research firm Gartner.
HPE expects revenue in the second quarter in the range of $6.6 billion to $7 billion, below analysts' average estimate of $7.11 billion, according to LSEG data.
It also reported a 13.5% fall in first-quarter revenue to $6.76 billion, missing estimates of $7.11 billion.
CFO Marie Myers said that the "softening of the networking market and GPU deal timing" impacted the company in the first quarter.
On an adjusted basis, the company reported 48 cents per share in the November-to-January quarter, above estimates of 45 cents per share.
Annualized revenue run-rate, a measure of future revenue, was up 42% to $1.4 billion in the reported quarter.
HPE is expected to roughly double its networking market share with its planned $14 billion deal for Juniper Networks, according to analysts.
-
Technology21h ago
suedAI voiceover company stole voices of actors, New York lawsuit claims
-
Technology1d ago
Bizarre device uses 'blind quantum computing' to let you access quantum computers from home
-
Technology1d ago
Colorado becomes first state with law regulating potential consumer harms of artificial intelligence
-
Technology1d ago
EU demands clarity from Microsoft on AI risks in Bing
-
Technology1d ago
Bird flu found in western China as US combats cattle outbreak
-
Technology1d ago
Study reveals oceanic voyage of famous ‘upside down tree'
-
Technology2d ago
Bats in Colorado face fight against deadly fungus that causes white-nose syndrome
-
Technology2d ago
Chinese state-backed company to launch space tourism flights by 2028