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Thursday, May 21, 2020

===Hewlett Packard Enterprise (HPE) reported earnings on Thur 21 May 20 (a/h)

Hewlett Packard Enterprise misses by $0.07, misses on revs; announces cost optimization and prioritization plan 
  • Reports Q2 (Apr) earnings of $0.22 per share, excluding non-recurring items, $0.07 worse than the S&P Capital IQ Consensus of $0.29; revenues fell 16.0% year/year to $6.01 bln vs the $6.28 bln S&P Capital IQ Consensus.
  • Annualized revenue run-rate (ARR): $520 million, up 17% from the prior-year period.
  • Co also approves a cost optimization and prioritization plan in order to focus HPE's investments and realign the workforce to areas of growth, including measures to simplify and evolve its product portfolio strategy, go-to-market configurations, supply chain structures, digital customer support model and marketing experiences, and real estate strategies. HPE expects that the plan will be implemented through fiscal year 2022 and estimates it will include gross savings as a result of changes to the company's workforce, real estate model and business process improvements of at least $1.0 billion, with the plan expected to deliver annualized net run-rate savings of at least $800 million by fiscal year 2022-end. In order to achieve this level of cost savings, HPE estimates cash funding payments between $1.0 billion to $1.3 billion over the next three years.

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