The Tech Bet

Whitman: HP Enterprise off to good start

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Hewlett Packard Enterprise is off to a good start after Hewlett-Packard split into two separate companies, CEO Meg Whitman said Wednesday, one day after HP's quarterly earnings fell short of expectations.

Whitman reiterated the company's plan to generate growth in its enterprise group next year and stabilize revenues in enterprise services with "quite significant" margin expansion.

"I think what the analysts saw is we are delivering on that plan. It was just negative 2 percent growth in constant currency, which is not what we aspire to, but that's been a business that's been in decline for a number of years," she told CNBC's "Squawk on the Street."

She noted that operating profit of 8.2 percent was the highest the company has recorded in four years.

"I think the turnaround is working in enterprise services, and the investors are starting to see that," she said.

Packages of HP ink cartridges.
HP falls over 11% after earnings miss

Tuesday's earnings report was Hewlett-Packard's last as a unified company, following its split into one firm focused on enterprise technology and another centered around HP's legacy computer and printing business.

Shares of the enterprise-oriented Hewlett Packard Enterprises were up 5 percent on Wednesday, while computer business HP Inc.'s stock price was down more than 15 percent.

Both companies gave weak first-quarter guidance. HP Inc. projects first-quarter earnings per share in a range of 33 to 38 cents while analysts expect the company to hit 42 cents. Hewlett Packard Enterprise estimates earnings per share within a range of 37 to 41 cents, also lower than analyst expectations of 43 cents.

Whitman, who is also chair of HP Inc., acknowledged that the personal computer market remains tough. Printing and personal systems group revenues were down 14 percent at HP Inc.

But Whitman noted that HP Inc. gained market share in multiple categories and captured its highest all-time share of the more profitable commercial PC segment. She said HP believes customers will begin to upgrade an estimated 450 million PCs that are 4½-years old, and that HP is well positioned for that cycle.

— CNBC's Ritika Shah contributed to this story.