Shares of Hewlett Packard Enterprise (HPE 0.42%) have jumped today, up by 5% as of 12:30 p.m. EDT, after the company reported fiscal Q3 earnings. The results and guidance for the current quarter beat expectations.
Revenue in the fiscal third quarter came in at $6.8 billion, which was ahead of the $6.1 billion in sales that Wall Street was modeling for. That resulted in adjusted earnings per share of $0.32, also topping the consensus estimate of $0.23 per share in adjusted profit. The tech company's annualized revenue run rate (ARR) increased 11% to $528 million. HPE said it had reduced its backlog by $500 million thanks to improved supply chain execution.
"We significantly improved operational and supply chain execution and advanced our innovation agenda with the introduction of HPE GreenLake cloud services solutions, our new HPE Ezmeral software portfolio, and our planned acquisition of SD-WAN leader Silver Peak," CEO Antonio Neri said in a statement. "We gained momentum in key areas of differentiation and accelerated our as-a-service pivot with strong ARR growth and a record number of HPE GreenLake services orders."
In terms of guidance, HPE is forecasting adjusted earnings per share of $0.32 to $0.36 in the fiscal fourth quarter, compared to the consensus estimate of $0.31. That should result in adjusted full-year earnings per share of $1.30 to $1.34 for fiscal 2020, while analysts were looking for just $1.21 per share in adjusted profits.