The Wall Street Journal: HP Enterprise warns of financial hit from spinoffs

Hewlett Packard Enterprise Co. detailed some short-term pain it foresees when two previously announced spinoffs close in the coming fiscal year, but said its remaining businesses should grow slightly regardless.

The company, created a year ago from the breakup of the former Hewlett-Packard Co., on Tuesday reaffirmed its financial expectations for the fiscal year ending this month at a meeting with analysts in San Francisco. It also presented financial projections for the coming 12-month period if its current structure were unchanged.

Those predictions, which include a slight revenue decline, are in line with Wall Street expectations. But the company’s structure is changing dramatically because of moves by Chief Executive Meg Whitman to further narrow the company’s focus.

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