Hewlett Packard Enterprise (HPE 18.07, +0.31) has added 1.8% in pre-market after announcing the completion of the separation of its Enterprise Services business, which was merged with Computer Sciences Corporation to create DXC Technology. In addition, the company updated its guidance for the fiscal year.
The spin-merge of the Enterprise Services business will allow Hewlett Packard Enterprise to focus on its core operation. The company says it will remain focused on the service side of its business. Through Pointnext, Hewlett Packard Enterprise has access to 25,000+ specialists in 80 countries to support HPE customers.
With the separation of its Enterprise Services business in the rear-view mirror, Hewlett Packard Enterprise adjusted its forward guidance. Second quarter earnings are expected to be impacted by $0.08 per share, which was previously announced. Earnings for the full year are expected to be impacted by $0.42 per share.
For the second quarter, HPE expects that earnings will be between $0.33 and $0.37 per share, which is down from previous guidance for earnings between $0.41 and $0.45 per share. Full year earnings are expected between $1.46 and $1.56 per share, which is down from previous guidance for earnings between $1.88 and $1.98 per share. It is worth noting that the company expects to incur a one-time non-cash GAAP-only charge in the second quarter due to changes to the company's legal structure.