Hewlett Packard leaves California for Texas in headquarters jump

Gov. Greg Abbott is on a state recruiting spree

Hewlett Packard Enterprise is kissing California goodbye as it prepares to move its headquarters to Houston, Texas.

Ticker Security Last Change Change %
HPE HEWLETT-PACKARD ENTERPRISE CO. 14.43 -0.43 -2.89%

The San Jose, California-based tech company disclosed the move in an SEC filing.

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“HPE has made the decision to relocate its headquarters from San Jose, California, to Houston, Texas. HPE’s largest U.S. employment hub, Houston is an attractive market to recruit and retain future diverse talent, and is where the company is currently constructing a state-of-the-art new campus. The Bay Area will continue to be a strategic hub for HPE innovation, and the company will consolidate a number of sites in the Bay Area to its San Jose campus. No layoffs are associated with this move.”

Source: Hewlett Packard Enterprise

Texas Gov. Greg Abbott celebrated the move, noting it could lead to more state jobs, and said an early 2022 opening is possible.

We are excited that Hewlett Packard Enterprise has chosen to call Texas home, and I thank them for expanding their investment in the Lone Star State by relocating their headquarters to the Houston region,” Abbott wrote in a statement. “Hewlett Packard Enterprise joins more than 50 Fortune 500 companies headquartered in the Lone Star State, including 22 in the Houston area alone.”

Abbott has openly been recruiting corporations to move to Texas.

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HP Enterprise on Tuesday also reported fiscal fourth-quarter net income of $157 million.

On a per-share basis, HP Enterprise said it had a profit of 12 cents. Earnings, adjusted for non-recurring costs, came to 37 cents per share.

The results beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 34 cents per share.

The information technology products and services provider posted revenue of $7.21 billion in the period, which also topped Street forecasts. Four analysts surveyed by Zacks expected $6.88 billion.

For the current quarter ending in February, HP Enterprise expects its per-share earnings to range from 40 cents to 44 cents.

The company expects full-year earnings in the range of $1.60 to $1.78 per share.

HP Enterprise shares have declined 29% since the beginning of the year.