HPE hybrid IT revenue falls 11% triggering share slump
HPE missed analyst estimates in its fourth-quarter earnings report on Monday, largely driven by slowing demand for core products and wider economic uncertainty.
Shares slumped 4% in after-hours trading, prompted by a drop of 11% in the company's Hybrid IT division, by far HPE's largest unit comprising its servers, storage and data centre products. Revenue for the unit came in at $5.67 billion, just short of the $5.74 billion expected by analysts.
The company's Intelligence Edge unit, a field that HPE has aggressively targeted, also saw a revenue slump by 6.5%, falling from $773 million to $723 million year over year.
In September, HPE CEO Antonio Neri warned that turbulent economic factors, including trade tensions, were creating "uneven demand" and would rattle customer confidence for some time to come.
Commenting on this week's earnings, he said: "We had a very successful fiscal year, marked by strong and consistent performance. Through our disciplined execution, we improved profitability across the company and significantly exceeded our original non-GAAP earnings and cash flow outlook, while sharpening our focus, transforming our culture and delivering differentiated innovation to our customers as they accelerate their digital transformations.
"I am confident in our ability to drive sustainable, profitable growth as we continue to shift our portfolio to higher-value, software-defined solutions and execute our pivot to offering everything as a service by 2022," Neri continued. "Our strategy to deliver an edge-to-cloud platform-as-a-service is unmatched in the industry."
There were some positive signs for the company. Quarterly profit was slightly higher than analyst estimates, earning 49 cents per share compared to the 46 cents per share that was anticipated, as reported by Reuters.
HPE also gave a positive outlook for the year ahead, estimating a $1.01 to $1.17 per share in profits and $1.78 to $1.94 per share in adjusted profits.
The earnings report brings to an end a year marked by a series of strategic acquisitions that will likely serve to further diversify HPE's earnings in 2020. In May the company acquired supercomputing giant Cray, a deal that came as somewhat of a surprise but will certainly lead to more developments in its high-performance computing division.
HPE also acquired the intellectual property of big data analytics specialist MapR in August. This deal included a bunch of AI technology and expertise that HPE said would be put towards its Intelligent Data Platform.
Latest Jobs
-
- VOIP / SIP App Developer. Contract. SIP | VOIP experience needed. SC Cleared Outside IR35 Contract. London
- London
- OUTSIDE IR35
-
SIP | VOIP Developer. SC Cleared Contract. London Looking for a SC Cleared SIP / VOIP Developer to develop an application that interacts with a set of voice and video signalling API’s You will also work on developing in-house applications, browser plugins and automated tooling to support secure communication systems. Responsibilities Develop an application that will manage number mapping and associated identities using commercial SBC API’s. Develop new user-facing features using React.js or other modern JavaScript frameworks. Build reusable components and front-end libraries for future use. Collaborate with the design team to translate UI/UX design wireframes into code. Work closely with backend developers to integrate front-end code with server-side logic. Conduct code reviews and provide constructive feedback to team members. Stay up-to-date on emerging technologies and industry trends to continuously improve our front-end development practices. Troubleshoot and debug issues that arise during development and in production environments. Maintain high coding standards and practices and ensure code is well-documented. Requirement Experience of developing specialist applications using REST API’s. Good knowledge of Go, Java and Python (open to alternative combinations of languages). Proficiency in front-end languages and frameworks such as HTML, CSS, JavaScript, React.js, etc. Strong understanding of web standards, responsive design, and cross-browser compatibility. Experience with version control systems such as Git. Knowledge of RESTful APIs and asynchronous request handling. Familiarity with UI/UX design principles and tools.
-
- Senior Data Privacy Consultant. Client Facing | London
- London
- N/A
-
Senior Data Privacy Consultant. Client Facing | London Senior Data Privacy Consultant needed for a key client facing opportunity. Must be willing to undergo SC Security Clearance. Hybrid role- onsite with customer / office 2-3 days a week. London Key Responsibilities: Lead and support client facing data privacy projects. Assess compliance, define and deliver strategic projects / implement privacy solutions. Manage project teams and develop business opportunities. Required Experience: Experience in data protection and privacy standards. Background in consulting. Skills and Qualifications: Business consulting experience IAPP Privacy Manager / Privacy Technologist Location Greater London UK based role. Not able to provide VISA sponsorship.
-
- Security Analyst - Internal role. London commutable. Permanent
- London
- N/A
-
Security Analyst - Internal role. London commutable opportunity. Operational Security - Investigate, escalate and proactively work to ensure household name remains protected. Project Security - Coordinate, log change requests with project delivery teams to meet security requirements Policy / compliance - work with team to aid in uplifting these as and where needed This role is role to investigate, escalate and proactively work to protect a globally recognised brand. You must have current hands on operational analytical security experience with Microsoft technology stack Someone with a SOC Analyst / security engineering background would be well suited. This position will join a small team and would suit someone that has broad experience across the security threat landscape. Experience / knowledge across industry GRC standards such NIST, ISO27001 etc very advantageous and a priority. You will work across multiple teams proactively working to secure the business. Must be able to commute to Central London 3 days a week. Visa sponsorship not available Apply today to find out more.
-
- Network / Security Infrastructure Engineer | West London | Permanent
- London
- N/A
-
Network / Security Infrastructure Engineer | West London | Current Config, Install, upgrade experience On prem / Datacetner experience essential. Hands on experience MUST include: Routing, Switching, Network Security (firewall, IDS etc), Microsoft exchange / Exchange 365. Scripting / automation experience wanted. Python, Powershell etc Regular travel to West London is required. Visa sponsorship not available. Apply today for more information chris.holt@dclsearch.com Use this whatapp link to reach out https://wa.me/message/6USF5RAQBOZIP1