When HPE (Hewlett Packard Enterprise Co) published its Q3 financial results on Tuesday, it beat the market expectations. Wall Street was expecting non-GAAP earnings of 26 cents, while the company reported 30 cents a share. It reported revenue of $8.2 billion as against the expectations of $7.49 billion.
Meg Whitman, the CEO of the company said,
“The results of the third quarter are an encouraging sign of the progress we are making.With better execution, we drove overall revenue growth, exceeded our EPS targets and improved our operating margins sequentially, all while completing the spin-merge of our Software business. There’s more work to do, but we are on the right track.”
With 2.5 percent rise in revenues in this fiscal’s third quarter, it is the first time in the last five quarters that the corporate technology giant could beat the analysts’ sales estimates.
From the past two years, the company was shrinking its base to make it more responsive to key markets. Earlier this week, it had announced that the sale of its software business is complete. The shrinking process started in late 2015 when HP Inc., the maker of printers and computers was split followed by the separation of large services and software businesses.
The company specified that their revenue in the storage business was up by 11 percent in this quarter that ended on July 31. The networking business revenue rose by 16% and it was only the sales of servers that declined in the quarter by 1%.
Following the good results in Q3, the shares of HPE rose by 5.8 percent in extended trading hours. Overall, in this year, the stock has already gained some 4.4 percent.