(AOF) – Hewlett Packard Enterprise gained 9.84% to 23.78 dollars after revealing higher profits than expected. Bank of America highlights that the group specializing in IT hardware and services for businesses recorded a “solid fourth quarter, driven by revenues from traditional servers and AI servers”. The design office remains at Buy with a price target of 26 dollars. According to JPMorgan, the ongoing recovery in the traditional server market is expected to continue.
In the fourth quarter, ended at the end of October, the group specializing in IT equipment and services for businesses generated a net profit of 1.34 billion dollars, or 99 cents per share, compared to a net profit of 642 million dollars or 49 cents per share a year ago. Excluding exceptional items, earnings per share came to 58 cents, 2 cents better than consensus.
HPE’s turnover increased by 15% to 8.5 billion dollars, where analysts expected 8.26 billion. Server revenue reached $4.7 billion, up 32%. Its sales of AI-oriented systems increased 16% compared to the third quarter to $1.5 billion.
For the next first quarter, the technology group is targeting adjusted earnings per share of between 47 and 52 cents for revenues up 15%. Wall Street expects 48 cents per share and growth of 15%.
-The pending acquisition of Juniper Networks has received approval from key jurisdictions including the European Union, United Kingdom, India, South Korea and Australia. HPE and Juniper Networks are cooperating with the U.S. Department of Justice and the companies expect the transaction to be completed in early 2025, within the previously announced timelines.
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