The share of the server specialist Hewlett Packard Enterprise (HPE) is heavily under pressure for the first quarter of the 2025 financial year. In particular, the view is not well received by investors.
• HPE with sales growth
• Outlook clearly fails to expect expectations
• Program for reducing the cost: massive job cancellations ahead
Hewlett Packard Enterprise (HPE) was able to easily exceed the analyst expectations in the first quarter of the 2025 financial year with a increase in sales from 16 percent to $ 7.85 billion. These were $ 7.82 billion for the quarterly turnover. For HPE, this was already the fourth increase in sales in a row, as CEO Antonio Neri emphasized in the press release. With an increase of 29 percent, sales with servers grew particularly strongly, which was $ 4.3 billion in the reporting period. Sales with the Hybrid Cloud also improved by ten percent compared to the same period last year to $ 1.4 billion. HPE, on the other hand, had to accept a decline in sales in the “Intelligent Edge” area, while the sales in the “Financial Services” area remained constant.
The adjusted profit per share per share was $ 0.49 in the reporting period and thus corresponded exactly to the analysts forecast. Compared to the comparison quarter of the previous year, however, he only attracted two percent. HPE’s net profit was $ 598 million in the first quarter-however, that was a whopping 52 percent more than in the same period ($ 387 million).
Despite the sometimes solid numbers, HPE CEO Antonio Neri said self-critically: “We could have done better in some areas this quarter,” he is quoted in the press release. At the same time, however, he emphasized that the innovations introduced in the reporting district would encounter great enthusiasm and that he was confident “that we will continue to be successful on the market”.
Outlook clearly fails to expect expectations
However, the outlook for the second quarter and the year as a whole was extremely negative on the market. HPE expects between $ 0.28 and $ 0.34 in the current annual quarter. According to “CNBC”, this is significantly below the analyst expectations of $ 0.50. The sales forecast of 7.2 to $ 7.6 billion is also clearly below the value that experts had predicted. According to the news page, they expected $ 7.93 billion sales in the current quarter.
For the year 2025, HPE predicts an adjusted profit per share between $ 1.70 and $ 1.90, while analysts have expected $ 2.13, according to “CNBC”. Sales should grow by seven to eleven percent.
As the news portal reports, HPE is planning price adjustments to take the higher costs into account by the US tariffs issued by US President Trump. “We assume that price adjustments could have a negative impact on sales growth at short notice,” said HPE financial chief Marie Myers according to “CNBC”. In order to meet the current challenges, however, Hewlett Packard Enterprise also plans extensive cost reduction measures. Around 2,500 jobs are to be deleted within the next 18 months, which corresponds to about five percent of the workforce. HPE hopes for this to save $ 350 million by the 2027 financial year.
HPE share in free fall after disappointing forecasts
The weak quarterly figures and the pessimistic outlook led to a massive price slip of the HPE share. In pre-exchanging trading on the NYSE, the HPE share temporarily drops by 19.38 percent to $ 14.48. This should continue to accelerate the recent descent of the share certificate: since the beginning of the year, the Hewlett Packard Enterprise share has already lost 15.88 percent.
Editor finance.net
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