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HPE sees major revenue drop

(Image credit: Image Credit: Hewlett Packard Enterprise)

Hewlett-Packard Enterprise (HPE) has published its fiscal results for the fourth quarter, as well as for 2019 as a whole, which have shown declining revenue in a couple of the company’s business lines.

In total, the company reported a net income of $480 million for the fourth quarter, representing a price of 36 cents per share. Revenue is $7.22 billion, down nine per cent compared to the same period last year.

Without charges, we’d be looking at 49 cents per share. Analysts were expecting non-GAAP earnings of 46 cents per share, and a revenue of $7.4 billion.

For the fiscal year, HPE said it had revenue of $29.1 billion with EPS of $1.77. Analysts were expecting $29.3 billion with EPS of $1.74.

The company’s revenue for its hybrid IT group for the quarter fell 11 per cent, hitting $5.7 billion. The Apollo storage service saw a 10 per cent rise year-on-year, while Composable Cloud revenue rose by more than a fifth (21 per cent). Hyperconverged infrastructure services were up 14 per cent year-on-year.

While HPE’s intelligent edge and financial services revenue were falling, Nimble Storage revenue rose two per cent. Aruba product revenue was down seven per cent, while Aruba services revenue was up 17 per cent.

Analysts have latched onto Aruba Services and Apollo, saying growth in those areas indicates a positive long-term revenue strategy.