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Hewlett-Packard Enterprise’s Shares Rise Despite Revenue Slowdown

Meg Whitman, chief executive officer and president of Hewlett-Packard, speaks during the grand opening of the company's Executive Briefing Center in Palo AltoMeg Whitman, chief executive officer and president of Hewlett-Packard, speaks during the grand opening of the company's Executive Briefing Center in Palo Alto
Meg Whitman, chief executive officer of Hewlett Packard EnterprisePhotograph by Stephen Lam — Reuters

(Reuters) – Hewlett Packard Enterprise, which houses former Hewlett-Packard’s corporate hardware and services division, reported better-than-expected quarterly revenue and profit, helped by strength in its hardware business.

Hewlett Packard Enterprise’s (HPE) shares (HPE)were up 6.4% at $14.47 in extended trading on Thursday.

Revenue in HPE’s enterprise group business, from which it derives more than half of its total revenue, rose about 1% to $7.1 billion in the first quarter ended Jan. 31, from a year earlier.

The company, which is headed by Margaret Whitman, also maintained its 2016 adjusted profit forecast of $1.85-$1.95 per share.

Net earnings fell to $267 million, or 15 cents per share, in the first quarter ended Jan. 31 from $547 million, or 30 cents per share, a year earlier.

After adjustments, the company earned 41 cents per share.

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The company’s revenue fell to $12.72 billion from $13.05 billion.

Analysts on average had expected earnings of 40 cents per share and revenue of $12.68 billion.

(This story was updated with additional information)