Hewlett Packard Enterprise (HPE) has reported Fiscal fourth-quarter financial results that beat Wall Street targets.
The company, which specializes in servers and computer storage, reported earnings per share $0.58 U.S. a share, which beat the consensus forecast among analysts of $0.56 U.S.
Revenue in the quarter totaled $8.46 billion U.S., which topped Wall Street estimates of $8.25 billion U.S. Sales were up 15% from a year earlier.
Management said the results were driven largely by growth in the company’s hybrid cloud segment. It increased 18% year-over-year following several down quarters.
Hybrid cloud is becoming more profitable, with its margins having doubled over the past year.
Hewlett Packard Enterprise also announced that revenue from its servers reached $4.71 billion U.S. in the latest quarter, up 32% from a year earlier.
The business is rising sharply alongside demand for servers that train artificial intelligence (A.I.) models. However, HPE’s networking segment saw sales shrink by 20% from a year earlier.
Looking ahead, HPE issued an outlook for the first quarter of 2025 that was inline with Wall Street expectations. The inline guidance may explain why HPE stock is flat in pre-market trading.
So far in 2024, the company’s share price has gained 28% to trade at $21.65 U.S. per share.
