Hewlett Packard Enterprise guidance falls amid softer networking demand

Investing.com -- Hewlett Packard Enterprise reported Thursday softer-than-expected guidance and first-quarter revenue that fell short of estimates as headwinds in its networking business weighed.

For Q2, the company forecast adjusted EPS in range of $0.36 to $0.41 on revenue between $6.6B to $7.0B. Wall Street was looking for EPS of $0.45 on revenue of $7.13B.

For the three months ended Jan. 31, the company reported adjusted earnings of $0.48 per diluted share, on revenue on $6.76 billion, compared with estimates of $0.45 and $7.10B, respectively.

The miss on revenue comes amid challenges brought by "the softening of the networking market and GPU deal timing," the company said.

Looking ahead to fiscal 2024, the company forecast adjusted EPS in range of $1.82 and $1.92 on revenue growth of flat to 2%.

Hewlett Packard Enterprise Co (NYSE: HPE) fell more than 2% in afterhours trading.

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