Hewlett Packard Enterprise Co. gave an outlook for earnings that was better than Wall Street was projecting, signaling that the server maker’s extensive cost cuts are paying off.

Profit, excluding some items, will be 32 cents to 36 cents a share in the fiscal fourth quarter, compared with analysts’ estimates for 32 cents. For the full fiscal year, the San Jose, California-based company said it expects earnings per share of US$1.30 to US$1.34, beating projections for US$1.20.

Chief Executive Officer Antonio Neri has spent more than two years trying to rekindle growth at the once-storied maker of complex computer systems. The coronavirus pandemic and resulting recession have largely sidelined those plans. For HPE, Dell Technologies Inc. and others, selling servers, networking gear and storage hardware is a cyclical business. Companies replenish their data centers with fresh equipment in good times and hold off during moments of uncertainty or economic crisis. Neri has tried to reduce HPE’s costs to get through this period, announcing in May a goal to shave as much as US$1 billion in expenses by the end of fiscal 2022 through job cuts and other measures.

In the three months ended July 31, sales fell 5.5 per cent from the same period a year earlier to US$6.8 billion, Hewlett Packard said in a statement Tuesday. Analysts, on average, had expected revenue of US$6.08 billion, according to data compiled by Bloomberg. Profit excluding some costs was 32 cents a share, down from 45 cents a year earlier but beating the average projection for 23 cents.

HPE shares jumped 5 per cent in extended trading after closing at US$9.33 in New York. The stock has dropped 41 per cent this year.