Shares of Hewlett Packard Enterprise Co. (NYSE: HPE) have tumbled ahead of the long holiday weekend. HPE announced that it has completed the spin-off of much of its software business, which will merge with a wholly owned subsidiary of Micro Focus International PLC (NYSE: MFGP), a U.K.-based global enterprise software company.
HPE CEO Meg Whitman said:
With the completion of this transaction, HPE has achieved a major milestone in becoming a stronger, more focused company, purpose-built to compete and win in today’s market. And, this transaction will deliver approximately $8.8 billion to HPE and its stockholders.
As a result of the transaction, HPE will adjust its fiscal year financial outlook when it reports its fiscal 2017 third-quarter results on Tuesday, September 5, 2017.
So far the consensus view of Wall Street analysts is that HPE will post per-share earnings of $0.26 and $7.49 billion in revenue when it shares its results. In the same period of last year, the Palo Alto, California-based company reported $0.49 in earnings per share, as well as revenue of $12.21 billion.
Barclays boosted its price target on HPE from $17 to $18 on Friday. It has an Underweight rating on the shares. Earlier, Loop Capital initiated coverage on the stock with a Hold rating and a $17 target price, and Jefferies reiterated its Buy rating and has a $22 target, the highest listed.
Shares were last seen trading at $14.14, after changing hands at more than $18 on Thursday and dropping over 20% to a 52-week low of $13.82 early Friday. The 52-week high is $19.16, and the consensus price target was $19.35 on last look.
Shareholders will have a long weekend to wait and see if HPE can offer up some good news in Tuesday’s report.