HPE stock rises following earnings beat, raised guidance for Q1 2023

Yahoo Finance tech editor Dan Howley highlights Hewlett Packard Enterprise's latest earnings report and its revenue guidance heading into 2023.

Video transcript

DAVE BRIGGS: All right, some breaking earnings news now. Hewlett-Packard Enterprise is out with the numbers. Dan Howley has the breakdown. Dan, shares rising. What are we seeing?

DAN HOWLEY: That's right. They had a beat on revenue this quarter. Q4, they came in with $7.87 billion in revenue versus expectations of 7.37 billion. They also met expectations as far as adjusted EPS and at $0.57 versus $0.57 or $0.56 versus the rounding. One of the things I want to point out here is their compute revenue came in at 3.74 billion. That's better than estimates of 3.14 billion. Of course, that's the kind of hardware that goes into their servers and all the kind of Enterprise solutions that they have to offer there.

The big news here is that they beat big time on their Q1 estimates for revenue. They're projecting 7.2 billion to 7.6 billion in Q1 revenue. The estimate for them was 7 billion. So obviously, a big move there. And just to hammer that home, this all comes at a time when we're looking at, obviously, inflation, as well as rising interest rates, which can impact companies and their ability to use CapEx, or go ahead and make any moves as far as CapEx spending goes. So to see this kind of performance out of HP is really a good sign for them.

DAVE BRIGGS: All right, Dan Howley there with the breaking earnings news. Thank you, sir.