Technology

Hewlett Packard Enterprise Shares Tumble Ahead of Q3 Earnings

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.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.