UPDATE 2-HPE revenue, profit top estimates, shares jump

(Adds dividend and buyback plan, background; updates shares)

Feb 22 (Reuters) - Hewlett Packard Enterprise Co reported better-than-expected quarterly revenue and profit on Thursday, boosted by higher sales of its storage and data center networking products, sending its shares up 11 percent in extended trading.

HPE, known for its computer servers, also forecast an adjusted profit of 29 cents to 33 cents per share for the second quarter. Analysts on average were expecting a profit of 26 cents, according to Thomson Reuters I/B/E/S.

HPE's newly appointed chief executive, Antonio Neri, said the company plans to return $7 billion to shareholders in the form of share repurchases and dividends by the end of fiscal 2019 due to the recent U.S. tax reform.

The plan includes a 50 percent increase in dividend starting from the third quarter of 2018, Neri said in a statement.

Neri recently replaced Meg Whitman, who surprised Wall Street last quarter by stepping down as CEO after transforming HPE into a company that focuses on areas such as networking, storage and technology services.

Palo Alto, California-based HPE said on Thursday that revenue in its Hybrid IT division, largely made up of the company's storage and data center networking products, rose 10 percent to $6.33 billion in the first quarter.

Total revenue rose 11 percent to $7.67 billion, edging past analysts' average estimate of $7.07 billion.

HPE's net income jumped to $1.43 billion in the quarter ended Jan. 31 from $267 million a year earlier on the back of a tax gain.

On a per-share basis, earnings were 89 cents per share, compared with 16 cents per share last year.

Excluding items, the company earned 34 cents per share in the latest quarter, much higher than the average analyst estimate of 22 cents.

The company's shares, which closed at $16.41, were at $18.16 in after-hours trading on Thursday. (Reporting by Arjun Panchadar in Bengaluru; Editing by Maju Samuel)