HPE misses Q1 revenue estimates

HPE's Q1 revenue was $11.4 billion, down 10 percent from a year ago.

Hewlett-Packard Enterprise is taking a hit after hours after the company revealed first-quarter revenue that's well below Wall Street estimates.

The company reported first quarter net income of $267 million, or 16 cents a share, on revenue of $11.4 billion, down 10 percent from a year ago. Excluding charges, HPE delivered earnings of 45 cents a share.

Wall Street was looking for first quarter non-GAAP earnings of 44 cents a share with $12.07 billion in revenue. HPE's share were down more than six percent in late trading Thursday.

"I believe HPE remains on the right track," said HPE chief executive Meg Whitman. "The steps we're taking to strengthen our portfolio, streamline our organization, and build the right leadership team, are setting us up to win long into the future."

Despite Whitman's optimism, HPE's revenue is down across the board.

Revenue for HPE's enterprise group was $6.3 billion, down 12 percent year over year. Servers revenue was also down 12 percent, and storage revenue was down 13 percent. Networking revenue was down 33 percent, and technology services revenue was down two percent.

Enterprise services revenue was down 11 percent year over year with $4 billion in revenue. Software revenue was $721 million, down eight percent year over year.

In terms of outlook, HPE expects second quarter non-GAAP earnings between 41 cents and 45 cents a share. Analysts were expecting earnings of at least 47 cents a share.

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