Enterprise IT giant Hewlett Packard Enterprise Co. (HPE) saw its shares dip Monday after lowering its adjusted profit outlook for the second quarter and full year following the completion of the spinoff​ of its enterprise services group and merging it with Computer Sciences Corp.

The newly combined entity, DXC Technology, is estimated to deliver $13.5 billion to HPE after tax, including an equity stake in DXC, a cash dividend payment to HPE and DXC’s assumption of debt.

To take into the account the partial-year contribution from enterprise services, which will no longer contribute to HPE’s financials, the Palo Alto, Calif.-based tech leader reduced its second-quarter earnings per share (EPS) guidance to $0.35 at the midpoint from $0.43. The firm’s full-year adjusted EPS estimate was also cut to $1.51 from $1.93. On a GAAP basis, HPE foresees posting a loss of $0.02 in the current second quarter. (See also: HPE Plummets on Steep Revenue Miss, Weak Outlook.)

Strong 2016, Nose Dive in 2017

After splitting from its PC and printing arm HP Inc. (HPQ) in late 2015, HPE underwent a massive core business trim down in which it shed it enterprise services and software units to focus on core hardware operations and invest in target markets. After selling off non-core assets, HPE Chief Executive Officer (CEO) Meg Whitman invested heavily in growth markets within the booming hybrid IT space, acquiring a number of smaller rivals in emerging industries such as high-performance computing, hyperconverged infrastructure and flash storage.

Trading down at a price of $17.50 per share on Monday, HPE stock reflects an approximate 26% decline from Friday, prior to the downward revised guidance. After lifting HPE about 55% in 2016, a poor first-quarter earnings report and cautious current-quarter guidance has worried investors, skeptical over the company’s ability to show returns from its massive restructuring. (See also: Analysts See ‘Real Muscle’ in HPE, Arista Alliance.)

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