Hewlett Jumps on Q3 Numbers

Hewlett Packard Enterprise Co (NYSE:HPE) reported upbeat results for its third quarter and issued a strong earnings forecast for FY20.

The company announced net revenue of $6.8 billion, down 6% from the prior-year period or 4% when adjusted for currency. Revenue grew 13% sequentially or 14% when adjusted for currency driven by solid execution in clearing historic backlog by approximately $500 million during the quarter.

Gross Profit of $2.1 billion, up 8% sequentially due to strong operation execution. GAAP gross profit margin of 30.3%, compared to 33.9% from the prior-year period and Non-GAAP gross profit margin of 30.4%, compared to 33.9% from the prior-year period.

HPE went on to say financial Services revenue was $811 million, down 9% year over year or 6% when adjusted for currency and down 3% sequentially or 2% when adjusted for currency, with 8.0% operating profit margin, compared to 8.7% from the prior-year period.

Net portfolio assets were up 3% year over year and up 4% sequentially or 1% when adjusted for currency, and financing volume was down 12% year over year or 9% when adjusted for currency and flat sequentially or up 1% when adjusted for currency despite the impact of COVID-19

Said CEO Antonio Neri, "Our Q3 results are marked by strong execution and sequential growth. We significantly improved operational and supply chain execution and advanced our innovation agenda with the introduction of HPE GreenLake cloud services solutions, our new HPE Ezmeral software portfolio, and our planned acquisition of SD-WAN leader Silver Peak."

HPE shares hiked 76 cents, or 8.2%, to $10.09 early Wednesday.