Hewlett Packard Enterprise shares slid 16% in extended trading on Thursday as the data center equipment maker issued quarterly and full-year guidance that came in below consensus.

Here’s how the company did in the fiscal first quarter in comparison with LSEG consensus:

• Earnings per share: 49 cents adjusted vs. 49 cents expected
• Revenue: $7.85 billion vs. $7.82 billion

HPE’s revenue rose 16% year over year in the quarter ending on Jan. 31, according to a statement. The company was left with profit of $598 million, or 44 cents per share, up from $387 million, or 29 cents per share, in the same quarter a year earlier. The adjusted earnings per share excludes stock-based compensation.

The company could have executed better in some parts of the business during the quarter, CEO Antonio Neri was quoted as saying in the statement.

HPE said it would implement a cost reduction program involving layoffs that will lead to $350 million in gross savings by the 2027 fiscal year.

During the quarter, the U.S. Justice department filed sued in a federal district court to stop HPE from acquiring Juniper Networks. HPE announced the proposed $14 billion deal in January 2024. The court expects a trial to begin in July, according to the statement.

HPE called for 28 cents to 34 cents in adjusted earnings per share for the fiscal second quarter, with revenue coming in between $7.2 billion and $7.6 billion. Analysts surveyed by LSEG had looked for 50 cents per share on $7.93 billion in revenue.

For the 2025 fiscal year, HPE called for $1.70 to $1.90 in adjusted earnings per share. Analaysts polled by LSEG had predicted $2.13 per share.

As of Thursday’s close, HPE shares were up about 2% so far in 2025, while the S&P 500 index was down 2%.

Executives will discuss the results on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: HPE shares fall more than 10% after mixed earnings, layoff plans