Shares of Hewlett Packard Enterprise Co. soared to a 52-week high of $18.19 during early trading after the company announced strong quarterly earnings and a $7 billion share repurchase plan.
The technology company's net earnings from continuing operations surged to $1.48 billion for the first fiscal quarter from $251 million in the comparable prior-year period, driven mainly by $935 million, or 58 cents per diluted share, in after-tax adjustments related to the new U.S. tax law.
Diluted EPS from continuing operations for the quarter that ended Jan. 31 stood at 92 cents, up from 15 cents in the same period of fiscal 2017. On a non-GAAP basis, diluted EPS was 34 cents, up from 28 cents in the prior fiscal quarter.
HPE's net revenue also jumped 11% to $7.67 billion for the quarter, up from $6.9 billion in the first fiscal quarter last year as the company's Hybrid IT segment posted a revenue increase of 10% to $6.33 billion from $5.76 billion.
Revenue from the Intelligent Edge segment stood at $620 million, up 9% from $570 million in the prior-year period, while the Financial Services segment rose 8% to $888 million from $823 million.
The company said it would buy back $7 billion in shares through fiscal year 2019 and announced a 50% dividend increase starting in the fiscal third quarter.
Looking ahead, the company projects full fiscal year 2018 GAAP diluted EPS and non-GAAP diluted EPS to be within a range of $1.35 to $1.45.