Storage returns to favour
Hewlett Packard Enterprise shares jumped 14.9% in the aftermarket following Q1 results showing an 11.6% Y/Y revenue growth.
In the revenue breakdown: Hybrid IT, was at $6.3bn (+9% Y/Y in constant currency with a 9.6% operating margin; Compute +10%, Storage +23%, DC Networking, 25%, and Pointnext flat); Intelligent Edge, $620m (+7% with 2.9% op. margin; HPE Aruba Product +7%, HPE Aruba Services +6%); Financial Services, $888m (+5% with 8.1% op. margin; net portfolio assets +6% and financing volume +7%).
“Our strong Q1 performance is proof that we have the right strategy and improved execution,” said Antonio Neri, President and CEO of HPE. “We had good revenue growth across every business segment, continued to execute HPE Next with no disruption to the business, and delivered strong shareholder return in the form of share repurchases and dividends.”
Analyst Pivotal Research Group said this strong earnings performance shows that the company can squeeze out profits even after selling off the software and services businesses.
