US stock markets: Hewlett Packard Enterprise soars over 12% after earnings
ALSO READ: HPE's Communications Technology Group to transition to HCLTech in strategic dealAt 11:50 am EDT, the HPE shares were at $19.70, up 11.96 per cent.The company forecast third quarter revenue of $7.4 billion to $7.8 billion.HPE also raised its forecast for full year adjusted earnings per share to a range of $1.85 to $1.95, from a prior forecast of $1.82 to $1.92 per share.The company reported revenue of $7.20 billion for the second quarter ended April 30.In the reported quarter, HPE’s server revenue surged 18 per cent from a year earlier, to $3.9 billion.Its AI-server revenue more than doubled sequentially to $900 million, and order backlog stood at $3.1 billion.“AI systems revenue more than doubled from the prior quarter, driven by our strong order book and better conversion from our supply chain," said Hewlett Packard Enterprise chief executive officer Antonio Neri.
ALSO READ: Wall Street today: US stocks mixed amid rate cut hopesThe company's lead times - the duration between starting and completing a process - to deliver Nvidia's AI-powered chips is now between six weeks and 12 weeks, Neri had said in a post-earnings call.“Long-term trends across hybrid cloud and networking also position us well for the future," said Hewlett Packard Enterprise CFO Marie Myers.HPE’s rival Dell Technologies forecast current quarter profit below Wall Street estimates.Milestone Alert!
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