HPE drops after Outlook disappoints on slower server offerings

(Bloomberg)– Shares of Hewlett Packard Enterprise Co. fell in premarket trading Friday after the company gave a sales outlook for the current quarter that fell short of high expectations for the AI ​​server business.

Revenue will be between $9 billion and $9.4 billion and earnings, excluding some items, will be between 57 cents and 61 cents in the period ending in January, HPE said Thursday in a statement. Analysts, on average, projected sales of $9.88 billion and profits of 53 cents, according to data compiled by Bloomberg.

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Sales in the fiscal fourth quarter, which ended Oct. 31, also missed analyst estimates, as some deals for servers to power artificial intelligence workloads were postponed until 2026, Chief Executive Antonio Neri said in an interview. A transaction in Europe is being delayed because of problems with a data center that was not ready, he said, and deals with the U.S. government were delayed by the federal government shutdown.