Hewlett Packard Forecasts Profit That May Beat Estimates
Company announces $8.8 billion deal for some software assets
Third-quarter revenue declined 6 percent as company slims down
Hewlett Packard Enterprise Co. forecast profit in the current quarter that may exceed some analysts’ projections, showing progress on Chief Executive Officer Meg Whitman’s moves to shrink the company and make it more nimble.
- Profit, excluding some items, will be 58 cents to 63 cents a share in the current quarter, Hewlett Packard said Wednesday in a statement. That may beat analysts’ estimates of 60 cents, according to data compiled by Bloomberg.
- The company reported profit, before certain items, of 49 cents a share in the third quarter ended July 31, topping analysts’ estimates of 44 cents.
- Sales fell 6.5 percent to $12.2 billion, compared with estimates of $12.6 billion.
Whitman is reducing the size of her hardware company to become more agile in the face of growing interest in cloud-based services that shift the need for buying tech gear to providers such as Amazon.com Inc. and Microsoft Corp. Hewlett Packard Enterprise -- following last year’s split from HP Inc., the maker of printers and computers -- said in May it will merge its technology-services division with Computer Sciences Corp. in a deal valued at about $8.5 billion. The company also said Wednesday it would spin off and merge some of its non-core software assets with U.K.-based Micro Focus International Plc in a transaction valued at $8.8 billion, including a $2.5 billion cash payment to Hewlett Packard Enterprise.