Additionally, HPE and Micro Focus announced plans for a commercial partnership that will name SUSE as HPE’s preferred Linux partner.
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HP’s acquisition of Autonomy was supposed to form the central part of the U.S. group’s move into software, but the plan fell apart after the disastrous deal cost HP shareholders billions of dollars in destroyed value.
Hewlett-Packard Co. a year ago split into two companies, with Hewlett Packard Enterprise selling commercial tech products and services, while HP Inc. focuses on personal computers and printers.
The Palo Alto, California, company said on Wednesday that the spun-off software businesses – including big data, security for big companies and IT operations management units – will merge with United Kingdom software company Micro Focus International PLC. After its shake-up is completed, HPE expects to have about $28 billion in annual revenue, down from $52 billion in its last fiscal year ending in October. Now, as it merges with Micro Focus, the HPE Software business will be part of an organization with approximately $4.5 billion in revenues. The entire transaction is expected to be tax-free for HP.
HPE Chief Executive Meg Whitman is focusing the group on a few areas such as networking, storage and technology services since it separated previous year from computer and printer maker HP Inc. she added “Micro Focus’ approach to managing both growing and mature software assets will ensure higher levels of investment in growth areas, like big data analytics and security, while maintaining a stable platform for software products that consumers rely on”. Net income soared to $2.27 billion, or $1.32 per share, thanks to a hefty gain on an asset sale.
Hewlett Packard Enterprise (NYSE:HPE) last released its quarterly earnings results on Wednesday, September 7th.
Revenue slipped about 6 percent year over year to $12.21 billion, missing Street forecasts.
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According to TIPRANKS, Based on 15 analysts offering recommendations for HPE in the last 3 months, the overall consensus is Moderate Buy (by analysts ranked 0 to 5 stars). That compares with the average FactSet estimate of $1.88 per share. The company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.04. Deutsche Bank AG increased their price objective on shares of Hewlett Packard Enterprise from $22.00 to $24.00 and gave the company a “buy” rating in a report on Thursday. The latest trading activity showed that the Hewlett Packard Enterprise Co price went down -4.21% from its 52-week low and trades up 85.13% versus its 52-week high.
