PALO ALTO — Whether it’s a symbol of the end of the Meg Whitman era, or the start of the reign of Antonio Neri, Hewlett Packard Enterprise got on the good side of Wall Street Thursday with better-than-expected quarterly results, and plans to return billions of dollars to shareholders due to the recent federal tax reforms.
HPE’s former business brother, HP Inc., was also having a good day following its own set of upbeat first-quarter results.
In its first quarterly report since Whitman stepped down as HPE’s chief executive Feb. 1, the business-technology giant turned in a first-quarter profit, excluding one-time items, of 34 cents a share, on $7.7 billion in sales, compared with earnings of 28 cents a share, on revenue of $6.9 billion in the same period a year ago. (HPE adjusted its year-ago sales to reflect the spinoff of its software business last year.)
Those results blew past the estimates of Wall Street analysts, who had forecast HPE to earn 22 cents a share, on $7.1 billion in revenue. The results gave HPE a huge boost in after-hours trading, as shares surged 15 percent, to $18.89.
HPE also said it would raise its quarterly dividend payment by 50 percent, from its current payment of almost 8 cents a share, return $7 billion to shareholders by the end of the year through dividends and stock repurchases, and increase its contributions to employee retirement plans due to the effects of the recently passed tax reform package.
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HP, which took over the personal computer and printing operations from the former Hewlett-Packard when that company split in two in late 2015, was also pleasing investors following it first-quarter results. HP reported earnings of 48 cents a share, excluding one-time items, on revenue of $14.5 billion, up from a profit of 38 cents a share, on $12.7 billion in sales, during its 2017 first quarter.
In after-hours trading, HP’s shares climbed almost 8 percent, to $23.09, following the release of its results.
Source:: East Bay – Business