Hewlett Packard Enterprise Earnings: HPE Stock Drops 5% on Terrible Q2

Hewlett Packard Enterprise (NYSE:HPE) earnings for fiscal second quarter of 2020 have HPE stock taking a beating after-hours Thursday. That’s thanks to its adjusted earnings per share (EPS) of 22 cents and revenue of $6.01 billion. These are both below Wall Street’s estimates of 30 cents and $6.32 billion.

Hewlett Packard Enterprise Earnings: HPE Stock Drops 5% on Terrible Q2

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Here’s what else is worth mentioning from the most recent Hewlett Packard Enterprise earnings report.

  • Adjusted per-share earnings are 47.6% lower than the 42 cents reported in fiscal Q2 2019.
  • Revenue for the quarter is down 15.9% compared to $7.15 billion in the same period of the year prior.
  • Operating loss of $834 million is much worse year-over-year than an operating income of $434 million.
  • The Hewlett Packard Enterprise earnings also have net loss sitting at $821 million.
  • That’s a negative switch from the company’s net income of $419 million during the same time last year.

Antonio Neri, President and CEO of Hewlett Packard Enterprise, said this about the fiscal Q2 earnings report:

“The global economic lockdowns since February significantly impacted our fiscal Q2 financial performance. We exited Q2 with $1.5 billion dollars in orders across the portfolio, representing two times the average historical backlog.”

Hewlett Packard Enterprise isn’t providing a guidance update in its report. The company withdrew its previous guidance in April due to the novel coronavirus. That’s a common trend among companies in light of the pandemic hampering the economy.

HPE stock was down 5.4% after markets closed on Thursday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/05/hewlett-packard-enterprise-earnings-hit-hpe-stock/.

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