HP Enterprise's shares jump after its revenue tops Wall Street's expectations

HPE

Data center technology company Hewlett Packard Enterprise on Tuesday reported better-than-expected quarterly revenue, helped by higher sales of its networking equipment.

Shares of the company rose 4.13 percent to $14.62 after the bell.

Revenue from the company's enterprise group division, which includes its storage and networking businesses and accounts for more than three-fourths of its total revenue, rose nearly 3 percent to $6.79 billion in the third quarter ended July 31.

That number beat the average analyst estimate of $6.37 billion, according to financial data and analytics firm FactSet.

The company said revenue from selling servers fell 1 percent while networking revenue rose 16 percent.

The Palo Alto, California-based company said it expected its current-quarter profit to be in the range of 26 cents per share to 30 cents per share.

Analysts on an average were expecting a profit of 40 cents a share, according to Thomson Reuters.

HPE reported a 2.5 percent rise in its quarterly revenue to $8.21 billion in its third quarter, beating the average analyst estimate of $7.49 billion.

However, its net income fell to $165 million, or 10 cents per share, in the period, from $2.27 billion, or $1.32 per share, a year earlier.

HPE's net income was partly affected by the spinoffs of its enterprise services business, which was merged with Computer Sciences, and its software business, which was merged with Micro Focus, the company said.

Excluding certain items, HPE would have earned 30 cents per share. 

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