Hewlett Packard Enterprise (HPE) raised its full-year earnings outlook on Wednesday, fueled by optimism surrounding AI-driven demand. This came after the company reported better-than-expected fiscal third-quarter results, surpassing Wall Street’s projections on both revenue and earnings.
Despite the positive news, shares of HPE fell 3% in after-hours trading.
Hewlett Packard Enterprise (NYSE) posted third-quarter earnings per share (EPS) of $0.50 on revenue totaling $7.71 billion. These figures exceeded analysts’ expectations of $0.47 EPS and $7.66 billion in revenue.
“These strong results highlight our progress in executing our edge-to-cloud strategy, which spans across networking, hybrid cloud, and AI,” the company said in a statement.
Looking ahead to the fourth quarter, HPE provided adjusted EPS guidance in the range of $0.76 to $0.81, well above the consensus estimate of $0.55. Projected revenue for the quarter is expected to fall between $8.1 billion and $8.4 billion, in line with analysts’ expectations of $8.15 billion.
For the full fiscal year, the company raised its adjusted EPS forecast to a range of $1.92 to $1.97, up from its previous estimate of $1.82 to $1.95. Revenue growth for the year is expected to be between 1% and 3%.
