Hewlett Packard Enterprise (HPE) shares rose over 11% on Friday after releasing strong fiscal fourth-quarter results, beating analyst expectations. The company’s revenue increased 15% year-over-year to $8.5 billion, and adjusted earnings grew 12% to $0.58 per share.
The data center segment drove the strong results, with server sales jumping 32% and intelligent edge products seeing a 20% decline in revenue. However, HP Enterprise also saw rapid adoption of its Greenlake cloud computing platform, which contributed to a significant increase in annual recurring revenue (ARR) by 48%.
Additionally, the pending acquisition of Juniper Networks, a high-speed networking equipment maker, is moving forward with most regulatory approvals received. Management expects Juniper’s products to account for half of the combined company’s operating profits.
HPE stock has gained 52% in the past year, outperforming its sideways trading trend. The Juniper acquisition is expected to further enhance HP Enterprise’s presence in modern data centers, providing a boost to its growth efforts.
Source: https://www.fool.com/investing/2024/12/06/why-hewlett-packard-enterprise-stock-jumped-11