HPE Posts Good Quarter, Spins Out Services to Merge With CSC
Hewlett-Packard Enterprise apparently isn't finished reinventing itself.
As part of its May 24 earnings report—which was the most positive one it's seen in five years—HPE revealed plans to spin out its enterprise services unit as a separate entity and merge it with IT consultancy Computer Sciences Corp. of San Mateo, California.
The huge IT products and services provider, which itself was one-half the original Hewlett-Packard Co. (the other half being Hewlett-Packard Inc., which sells printers, laptops and desktop PCs) started life as HPE only six months ago. HPE reported adjusted earnings of 42 cents per share on $12.71 billion in sales for its fiscal second quarter.
A poll by Thomson Reuters of Wall Street analysts had projected $12.34 billion in revenue.
HPE's revenue total beat Wall Street expectations, which is not something the company had done since 2011. Its services division will merge with CSC.
The revenue total beat Wall Street expectations, which is not something the company had done since 2011. Profit, however, fell 2 percent from a year earlier, while revenue was basically flat at about 1 percent.