Hewlett Packard Shares Rise on Strong Q3 Earnings, Appointment of New Chief Financial Officer | Financial Buzz

Hewlett Packard Shares Rise on Strong Q3 Earnings, Appointment of New Chief Financial Officer

Shares of Hewlett Packard Enterprise (NYSE: HPE) rose on Tuesday after the Company reported earnings for the third quarter that topped expectations.

The information technology Company said it earned 44 cents per share, excluding certain items, compared to the 37 cents analysts had estimated. Net income for the quarter rose to USD 7.76 Billion versus USD 7.68 Billion as expected by analysts. Hewlett Packard’s revenue was up 3.5% year over year, according to a statement made by the Company.

The biggest portion of HP’s revenue comes from its Hybrid IT business segment — including compute, storage, and data center networking products — came in at USD 6.24 Billion, above the FactSet analyst consensus of USD 6.16 Billion. The Intelligent Edge segment, including Aruba, came in at USD 785 Million, above the FactSet analyst consensus of USD 766.3 Million.

With respect to guidance, HP said it’s expecting to report 39 to 44 cents in earnings per share, excluding certain items, in its fiscal fourth quarter. Analysts had expected 42 cents in earnings per share for the fiscal fourth quarter, according to Thomson Reuters.

In the fiscal third quarter HP announced a commitment to invest USD 4 Billion in “Intelligent Edge” technologies and services over the next four years.

The Company also announced on Tuesday the appointment of a new Chief Financial Officer, Tarek Robbiati, who replaces Tim Stonesifer. Robbiati most recently spent two and a half years as Chief Financial Officer of Sprint. Chief Executive Officer Antonio Neri said that Robbiati led Sprint’s efforts to reduce its operating expenses.

Less than 5% of HPE’s cost of sales comes from China, Stonesifer said. “It’s a big number, but it’s not a huge number,” he said. “After rounds one and two [of tariffs], we have been able to make some changes in our supply chain motion and think there is minimal risk from a financial perspective.”