The provider of communication equipment and information services and servers, Hewlett Packard Enterprise Company (HPE), recently said that its sales had returned to pre-coronavirus levels.
Antonio Neri, head of HPE, said he was not surprised that his company was returning to the indicators prior to COVID-19. With the previous growth rates at HPE, positive dynamics were already in place after the second quarter. The core business demonstrates growth in areas that during the COVID-19 period fell at double-digit rates. Thus the direction of smart solutions shows a year-on-year increase of 5 percent and high-performance computing by 25 percent. This helped compensate for a single-digit drop in computer and storage segment sales. As many businesses refused to spend on new equipment, these segments were under pressure from the pandemic, and employees of various organizations worked remotely.
During the difficult period, HPE was able to ensure strict expense control and exceeded Wall Street expectations in the third quarter, which gave a positive boost to HPE. Revenue reached $7.2 billion for the quarter, with $0.37 in earnings per diluted share.
In the new business environment for corporate customers, HPE believes that current demand is stable. Analyst Jerial Ong of Deutsche Bank shares a similar view and considers HPE’s outlook to be positive as the company continues to improve earnings per share.
The company this week announced that the National Tree Corporation, a major producer of artificial holiday decor, has restructured its IT infrastructure with HPE Nimble Storage dHCI.
Adopted for improved results when handling customer orders, National Tree Company joined the increasing number of businesses that have selected HPE’s that storage solution. HPE revealed in Q4 earnings reported that revenue from that segment increased by 280 percent year-over-year.
Hewlett Packard Enterprise Company (HPE) was stable (-0.08%) on Wednesday to close the session at $12.16.