Hewlett Packard Enterprise, HP Inc. Both Drop After Earnings

On the anniversary of their split, Hewlett Packard Enterprise Co. and HP Inc. dropped together Tuesday afternoon after revealing fiscal fourth-quarter earnings. HPE, which focuses on sales to businesses, came in well below its forecast for net income, at $300 million, or 18 cents a share; the company had said it expected earnings of 44 cents to 49 cents a share. After adjustments, HPE claimed profit of 61 cents a share, which was within its forecasted range and a penny more than analysts' expectations, on revenue of $12.5 billion. Analysts expected HPE to report adjusted earnings of 60 cents a share on sales of $12.8 billion, according to FactSet. The consumer-focused business reported net income of $500 million, or 30 cents a share, on sales of $12.5 billion. After adjustments, HP claimed profit of 36 cents a share. HP Inc. was expected to report adjusted profit of 36 cents a share on sales of $11.9 billion. Shares of both companies declined in late trading, with HPE dropping about 0.4% and HP Inc. taking a bigger tumble of more than 2%. The former Hewlett-Packard Co. split into HP Inc. and Hewlett Packard Enterprise Co. a year ago, with Chief Executive Meg Whitman remaining in charge at HPE and leaving the consumer-technology company in the hands of Dion Weisler.