Hewlett Packard Enterprise Co rose after giving a profit forecast that topped analysts\u2019 estimates, signaling that it\u2019s starting to benefit from cost cuts and a push into higher-margin businesses, such as networking and services.<\/p>\n
The results were boosted by services and sales of higher-margin servers, showing that Chief Executive Officer Antonio Neri is making early progress on a turnaround. The company expects profit of 39 to 44 cents a share in its fiscal fourth quarter.<\/p>\n
Analysts estimated 42 cents on average, according to data compiled by Bloomberg. Sales came in at $7.8 billion in the period ended July 31. That beat Wall Street expectations, too. Tarek Robbiati, former chief financial officer at Sprint Corp, will succeed Tim Stonesifer as HPE\u2019s CFO. Stonesifer will depart in October.<\/p>\n
Shares rose about 1% in extended trading after closing at $16.74 in New York. The stock has climbed more than 15% this year.<\/p>\n
Executive Commentary<\/strong><\/p>\n \u201cIT spending is continuing to be solid and we are executing better,\u201d Neri said. \u201cWe have the right strategy and the right portfolio in an area that\u2019s rapidly growing, intelligent edge.\u201d Neri\u2019s talking about a $4 billion bet on \u201cintelligent edge\u201d computing products that crunch data closer to where information is generated.<\/p>\n HP expects full-year adjusted earnings of $1.50 to $1.55 a share. Wall Street was looking for $1.47. Fiscal third-quarter adjusted earnings came in at 44 cents a share, also beating analysts\u2019 estimates. HP\u2019s adjusted operating margin was 9.6 percent, up from 6.9% a year earlier.<\/p>\n
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