The net profit of the American Hewlett-Packard Enterprise (HP Enterprise), isolated a year ago from Hewlett-Packard Co (NYSE: HPQ) (shortly known as HP) and engaged in production of goods and provision of services for corporate clients, fell by 4.6 times in the fourth fiscal quarter - to $ 302 million, or 18 cents per share, compared with $ 1.385 billion, or 75 cents per share, the same period a year earlier.
The income from continuing operations, excluding restructuring costs, amounted to 61 cents per share.
The company's revenue fell 7.2% in August-October, to $ 12.48 billion, according to HP Enterprise release.
The indicators fell amid weak demand in the corporate IT services sector.
Analysts polled by FactSet, on average, had forecast an adjusted profit of the company at 60 cents per share on revenue of $ 12.79 billion.
In the servers division, the revenue decreased by 7%, in the field of data storage services, it fell 5%, while the business for the production of network equipment recorded a fall by 34% in the index.
During the last fiscal year, the overall HP adjusted earnings were $ 1.92 per share - thus, the company’s own forecast, at $ 1.90-1.95 per share, was correct. The company expects to increase this figure to $ 2-2.1 per share in 2017.
In May, the company announced plans to isolate its business department that provides IT services to corporate clients and integrate it with the company – Computer Sciences Corp. (NYSE: CSC). In addition, in September, the firm announced its intention to allocate non-core operations in the field of software production and combine them with the assets of the British Micro Focus International in a deal worth $ 8.8 billion.
In the current fiscal quarter, the company expects to receive an adjusted profit of 42-46 cents per share, while the experts expect this figure at 46 cents per share.