Hewlett Packard Enterprise Co (NYSE:HPE, ETR:2HP) stock jumped more than 8% before Wednesday’s opening bell as the IT infrastructure provider reported strong earnings for its fiscal second quarter.
For the three month period ending April 30, adjusted earnings per share (EPS) were down 10% year-over-year at $0.38, but beat Street estimates of $0.33.
Revenue of $7.6 billion, up 6% year-over-year, was ahead of Street guidance of $7.5 billion.
This was driven by a 6% increase in Server revenue to $4.1 billion, with Hybrid Cloud revenue up 13% at $1.5 billion and Intelligence Edge revenue up 7% at $1.2 billion.
Annualized revenue run-rate surged 46% from the year-ago quarter to $2.2 billion, driven by the expansion of HPE’s GreenLake Cloud subscription services.
For Q2, HPE guided revenue between $8.2 billion and $8.5 billion and adjusted EPS between $0.40 and $0.45, above analyst expectations.
“We drove higher revenue year-over-year in Q2 across Server, Intelligent Edge, and Hybrid Cloud, and, importantly in Server, we improved margin performance over the course of the quarter,” HPE CFO Marie Myers said in a statement.
“We are maintaining our focus on achieving efficiencies and streamlining operations across our businesses to position HPE for the future and deliver financial results aligned with our fiscal 2025 outlook.”
Shares of HPE added 8.5% at about $19 shortly before US markets opened on Wednesday.