Why Hewlett Packard Enterprise Shares Fell 39% in the First Half of 2020
Shares of IT services and network security veteran Hewlett Packard Enterprise (NYSE: HPE) fell 39% in the first half of 2020, according to data from S&P Global Market Intelligence. HPE was arguably overpriced at the start of 2020, and the inevitable correction was accelerated by two disappointing earnings reports.
The first-quarter report in March showed early signs of COVID-19 disruption. HP Enterprise saw sales fall 9% year over year amid virus-related component manufacturing issues. Three months later, it dropped 12% in a single day as the second-quarter report fell short of analyst estimates across the board. This time, sales dropped 16%. The COVID-19 problems included both manufacturing challenges and slower orders from enterprise-class customers.
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Source Fool.com