Hewlett Packard Enterprise (HPE) is recognized as a leader in the technology industry and continues to play a major role in the sector. The company has once again demonstrated this through its strong performance in the third quarter of FY 2020/21. It has delivered improved results in this period enabling it to raise its full year outlook.
For the full third quarter of fiscal 2020/21, Hewlett Packard Enterprise (HPE) delivered better-than-expected results. Notably, the company's revenues increased. In Q3-2020/21, its revenue was $6.9 billion. This is a slight increase of 1%, compared to the same period last year.
At constant exchange rates, sales were down by 2% year-on-year. It is therefore slightly below market expectations. The market was looking for $6.93 billion for the quarter. The company's net income for Q3 2020/21 was $392 million (or 29 cents per share).
A year earlier, it was $9 million (or 1 cent per share). Adjusted EPS rose 37% to 47 cents in the quarter, 5 cents ahead of the market. It exceeded management's expectations of a range of 38 to 44 cents. The company's adjusted gross margin improved 4.2 percentage points to 34.7%.
During the release of its third quarter 2020/21 results, HPE Group also touched on the topic of its outlook. On the back of the strong performance in the quarter, the technology company has raised its annual targets for the current financial year.
The company has raised its adjusted earnings per share guidance for the full year 2020/21. It now expects it to be between $1.88 and $1.96. The fourth quarter is expected to generate adjusted EPS in the range of 44 to 52 cents. Previously, HPE had expected a figure between 1.82 and 1.94 dollars.
For its part, the market was targeting adjusted EPS of $1.89 for this year. In addition, the IT group also raised its free cash flow forecast for the full year 2020/21. It is now targeting between $1.5bn and $1.7bn. Previously, the company was targeting a range of $1.2bn to $1.5bn.
Hewlett Packard Enterprise (HPE) is an American company founded in 2015 and based in the United States. Its creation emanates from the spin-off of the Hewlett-Packard Group. It specializes in IT hardware and services for businesses.
HPE offers them a wide range of servers to enable them to cope with their current and upcoming workloads. The group also offers its customers high-performance and highly reliable storage solutions. HPE has approximately 59,400 employees.