Hewlett Packard Enterprise (NYSE: HPE) reported Q2 EPS of $0.35, $0.01 worse than the analyst estimate of $0.36. Revenue for the quarter came in at $9.9 billion versus the consensus estimate of $9.73 billion.

• Combined net revenue of $9.9 billion includes $7.4 billion from continuing operations (Enterprise Group, HPE Financial Services and Software) and $2.5 billion associated with discontinued operations (two months of Enterprise Services)
• Future HPE (excludes Enterprise Services and Software) revenue was up 1% year-over-year, excluding Tier-1 server sales and when adjusted for divestitures and currency
• Second quarter GAAP diluted net loss per share of ($0.37), below the previously provided outlook of ($0.07) to ($0.03) per share, due to spin-merger related, non-cash tax valuation allowances and divestiture taxes
• Second quarter non-GAAP diluted net earnings per share of $0.35, within the previously provided outlook of $0.33 to $0.37 per share
• Fiscal 2017 GAAP diluted net EPS outlook updated to ($0.03) to $0.07
• Fiscal 2017 non-GAAP diluted net EPS outlook remains $1.46 to $1.56

GUIDANCE:

Hewlett Packard Enterprise sees Q2 EPS of $0.24-$0.28, versus the consensus of $0.31.

Hewlett Packard Enterprise sees FY2017 EPS of $1.46-$1.56, versus the consensus of $1.47.

“While we faced margin pressure in Q2, we expect improvement through the remainder of the year as we mitigate commodities cost pressure and eliminate costs associated with spin-mergers and acquisitions,” said Tim Stonesifer, CFO, Hewlett Packard Enterprise. “The completion of the spin-merger of our Enterprise Services business gives us the opportunity to further optimize the cost structure of the future HPE. We are now focused on driving an incremental $200-300 million in cost savings in just the second half of this year. We maintain our FY17 EPS outlook.”

For earnings history and earnings-related data on Hewlett Packard Enterprise (HPE) click here.