Hewlett Packard Enterprise Co. (NYSE: HPE) reported its first quarter financial results for fiscal year 2018 and topped analysts’ estimates in both revenue and earnings. Shares were trading 10 percent higher after the opening bell on Friday.
For the fourth quarter, Hewlett Packard reported revenue of $7.67 billion, increasing 11 percent year over year, and beating analysts’ estimates of $7.07 billion. The company reported an EPS of $0.34, up from $0.28 a year prior, and beating analysts’ estimates of $0.22.
“We had good revenue growth across every business segment, continued to execute HPE Next with no disruption to the business, and delivered strong shareholder return in the form of share repurchases and dividends.” said Antonio Neri, President and CEO of HPE.
Hybrid IT revenue increased 10 percent year over year to $6.3 billion, driven heavily by the strong growth of the smaller segments. Computer revenue grew 11 percent, storage revenue grew, storage revenue grew by 24 percent and DC networking grew by 27 percent.
Intelligent edge revenue grew 9 percent year over year to $620 million and financial services grew by 8 percent year over year to $888 million.
“Our strong Q1 performance is proof that we have the right strategy and improved execution,” added Neri.
Hewlett Packard announced to increase its share repurchases and intends to return $7 billion in 2019, including a 50 percent increase in its dividend due to the recent tax reform that benefited the company.
For the second quarter, Hewlett Packard forecasts a non-GAAP diluted net EPS exclude tax costs of $0.19. For the 2018 full year, the company forecasts a non-GAAP diluted EPS in the range of $1.35 to $1.45.