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HPE Stock Rises After AI Surge Fuels Sales of Servers

Jun 05, 2024 - news.bensbites.com
Hewlett Packard Enterprise Co. reported a fiscal second-quarter revenue increase of 3.3% to $7.2 billion, surpassing analysts' expectations. This increase was largely due to a significant rise in sales of servers designed for artificial intelligence work. Wall Street had predicted a 2% decline year over year to $6.82 billion.

The company's shares rose by 17% in extended trading following the announcement. Excluding certain items, the profit was 42 cents per share for the period ending April 30, which was also higher than the average analyst estimate of 39 cents per share.

Key takeaways:

  • Hewlett Packard Enterprise Co. reported revenue that exceeded analysts' estimates due to a significant increase in server sales for artificial intelligence work.
  • The company's shares increased by 17% in extended trading.
  • Fiscal second-quarter revenue rose by 3.3% to $7.2 billion, surpassing Wall Street's projection of a 2% decline to $6.82 billion.
  • The company's profit, excluding some items, was 42 cents per share for the period ended April 30, which was higher than the average analyst estimate of 39 cents.
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