HP Tops Earnings Estimates and Decides to Move Headquarters to Houston

To start the month of December off, Hewlett Packard Enterprise posted better-than-expected financial results for its fiscal fourth quarter and provided guidance that topped analyst expectations.

Q4 2020 Financial Highlights include revenue returning to pre-pandemic levels of $7.2 billion, up 6% from the prior quarter and flat from the prior-year period.

A big acceleration in growth businesses and strong as-a-service momentum was also seen during the quarter.

Diluted net earnings per share were GAAP of $0.12, above the previously provided outlook of $0.02 to $0.06 per share.

Non-GAAP of $0.37 was above the previously provided outlook of $0.32 to $0.36 per share.

The company additionally declared a regular cash dividend of $0.12 per share, payable on January 6, 2021.

“Hewlett Packard Enterprise finished the year with a very strong performance,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “In Q4 we saw a notable rebound in our overall revenue, with particular acceleration in key growth areas of our business.”

“The global pandemic has forced businesses to rethink everything from remote work and collaboration to business continuity and data insight,” he continued. “Over the last several months, customers have increasingly turned to HPE for our unique capabilities from edge to cloud that help them empower their workforces, deploy resilient new IT solutions and extract insights from critical data, while consuming these solutions more flexibly as a service.”

“Our focused strategy and disciplined execution are delivering results,” said Tarek Robbiati, EVP and CFO of Hewlett Packard Enterprise. “Based on the strong finish to FY20 and increased confidence in profitability going into Q1, we are raising our FY21 EPS guidance.”

The company also announced that it’s moving its corporate headquarters to Houston from San Jose, Calif. This is a big move for the company considering its long history in the Silicon Valley.

HP has said that Houston is an attractive market to recruit and retain future diverse talent, and is where the company is currently constructing a state-of-the-art new campus.

According to the company’s press release, the Bay Area will continue to be a strategic hub for HPE innovation, and the company will consolidate a number of sites in the Bay Area to its San Jose campus. No layoffs are associated with this move.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.