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Why is Hewlett Packard Enterprise (HPE) Stock Surging Today?

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On Friday, shares of Hewlett Packard Enterprise Co HPE are on the rise, up 14.63% to $15.59 as of 10:38 AM EST, thanks to better than expected earnings reported yesterday. Its results have increased confidence across the board about the demand for corporate technology.

The enterprise spin-off company reported earnings $0.41 per share, which excluded $0.26 from non-recurring items, surpassed the Zacks Consensus Estimate of $0.39 per share.

Revenues also beat estimates. The company reported revenues of $12.72 billion, just beating the Zacks Consensus Estimate of $12.699 billion.

"I went from running six businesses to focusing on three businesses. It means I spend the same amount of time with customers, it's just all talking about Hewlett Packard Enterprise, so customers feel like they get more attention," CEO Meg Whitman told CNBC's " Squawk on the Street ."

She continued, saying "I think the strength of the quarter … does really lie on the premise of the split, which is two different businesses with more focus from senior leaders, more focus on our customers. I think it's at least the first proof point that this was the right thing to do."

Looking ahead to its second quarter of fiscal 2016, HPE now expects adjusted earnings between $0.39 - $0.43 per share, compared to a $0.42 average Wall Street estimate. For all of 2016, the company said it expects adjusted earnings between $1.85 and $1.95 per share. Wall Street had expected $1.87 for the fiscal year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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