Hewlett Packard Enterprise Co (NYSE:HPE) slipped just 1.1% lower, to $16.65, despite a broadly positive albeit not spectacular financial performance in its third quarter.
The business-to-business group IT services group reported, after Tuesday's market close, third-quarter revenue rose 1% to $7 billion, while earnings increased to $0.35 per share from $0.32 a year earlier – on an adjusted basis it was marked at $0.49, beating forecasts for $0.47. It said the performance was driven by Edge product momentum and a portfolio mix shift.
Its adjusted earnings per share, though, came in at $0.49, as its gross margins for the quarter of 35.8% improved 130 basis points from the same period last year.
Analysts surveyed by FactSet had expected adjusted earnings of $0.47 a share on revenue of $6.99 billion.
“The pivot in our portfolio toward higher-growth, higher-margin markets is clearly visible in our year-over-year expansion of gross margins,” Hewlett Packard Enterprise interim chief financial officer Jeremy Cox said in a statement.
“Our differentiated edge-to-cloud strategy is fueling strong results in an uneven market.”
Looking ahead, Hewlett Packard Enterprise said it expects full-year earnings in the range of $2.11 to $2.15 per share, citing confidence that businesses are upgrading their technology despite concerns about the economy.