Hewlett Packard Enterprise, HP Inc. Both Drop After Earnings

By Markets MarketWatch Pulse

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.

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