PALO ALTO, Calif. _ Hewlett Packard Enterprise said Thursday that its fiscal first-quarter sales fell 10 percent from a year ago and that the computer-technology giant is seeing new "significant headwinds" that will affect its business through the rest of this year.
After the stock market closed, HPE said it earned 16 cents a share on revenue of $11.41 billion, compared to a profit of 15 cents a share on $12.72 billion in sales a year ago. Excluding one-time items, HPE earned 45 cents a share.
HPE's adjusted earnings managed to top the 44-cents-a-share estimate forecast by analysts in a Thomson Reuters survey. However, the company's sales fell short of analysts' expectations of $12.07 billion.
The company also cut its earnings outlook for its full fiscal year by 12 cents a share. HPE now estimates it will earn between $1.88 a share and $1.98 a share for the year. HPE said in a statement that it was cutting its forecasts due to "increased pressure from foreign exchange movements, higher commodities pricing and some near-term execution issues."
The combination of the weaker sales and the expectations of lower earnings hit HPE shares in after-hours trading. Investors drove HPE shares down by almost 6 percent to $23.20 after the company's report.
HPE Chief Executive Meg Whitman said in a statement that, despite some disappointing data, the company "remains on the right track," and is taking steps that "are setting us up to win long into the future."
