The shares fell about 2.5% in extended trading after the results.
The quarterly report reflects a seesawing tech recovery as some of the pandemic’s biggest winners such as PC makers and internet companies report slowing demand, while those hurt the most by Covid restrictions experience a rebound.
Revenue from HPE’s Intelligent Edge segment, which includes hardware and software for businesses and government customers, jumped 10% in the fiscal fourth quarter ended Oct. 31, the company said in a statement Monday. Orders rose even more, signaling more growth ahead.
Still, Chief Executive Officer Antonio Neri said customers are being “a lot more thoughtful” about their spending, partly because of the looming threat of inflation. In an interview, he said customers and the company alike don’t have a good handle on how economic conditions will shape the coming months.
“When you don’t have a clear point of view, you pause and you reset and you kind of reevaluate your investments,” Neri told Bloomberg Television.
For the current fiscal first quarter, the company said it expects to report adjusted per-share earnings of 43 to 50 cents, below the average analyst estimate of 54 cents. HPE also projected sales growth in a range that’s narrower than the market consensus.
On an adjusted basis, HPE said its net income climbed to $1 billion, or 42 cents a share, in the fourth quarter, up from $792 million, or 33 cents a share, in the year-earlier period. Analysts on average had projected earnings of 40 cents a share.
Total revenue rose 7% to $7.2 billion, beating Wall Street projections of $7 billion.
For the full fiscal year, HPE reported adjusted earnings of $1.75 a share, with sales of $27.8 billion. Both figures were above the company’s earlier guidance.
Shares of HPE have climbed 18% in 2021.
(Updates shares in third paragraph.
