What to Expect When Hewlett Packard Enterprise Reports After the Close

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Hewlett Packard Enterprise Co. (NYSE: HPE) is scheduled to release its most recent quarterly results after the markets close on Tuesday. The consensus estimates from Thomson Reuters call for $0.37 in earnings per share (EPS) and $7.68 billion in revenue. The fiscal third quarter of last year reportedly had $0.30 in EPS and $8.21 billion in revenue.

In its most recent quarter, the company issued guidance calling for EPS in the range of $0.35 to $0.39.

Also in the fiscal second quarter, the company reported its segment results as follows:

  • Hybrid IT revenue was $6.0 billion, up 7% year over year and up 4% when adjusted for currency, with a 10.3% operating margin. Compute revenue was up 6%, up 2% when adjusted for currency, Storage revenue was up 24%, up 22% when adjusted for currency, DC Networking revenue was up 2%, down 1% when adjusted for currency, and Pointnext revenue was up 1%, down 1% when adjusted for currency.
  • Intelligent Edge revenue was $710 million, up 17% year over year and up 14% when adjusted for currency, with a 6.5% operating margin. HPE Aruba Product revenue was up 18%, up 14% when adjusted for currency, HPE Aruba Services revenue was up 10%, up 11% when adjusted for currency.
  • Financial Services revenue was $916 million, up 5% year over year and up 1% when adjusted for currency, net portfolio assets were up 3%, and financing volume was flat year over year. The business delivered an operating margin of 7.9%.

Overall, HPE has more or less performed in line with the broad markets, with its stock up about 18% in the past 52 weeks. In just 2018 alone, the stock is up about 14.5%.

A few analysts weighed in on HPE ahead of the report:

  • Sanford Bernstein has a Market Perform rating and an $18 price target.
  • Nomura has a Neutral rating with a $16 price target.
  • Pivotal Research has a Hold rating and an $18 price target.
  • Wells Fargo has a Hold rating.
  • Morgan Stanley has an Overweight rating with a $21 target price.
  • Barclays has a Sell rating.

Shares of HPE were last seen up about 1.5% at $16.71, with a consensus analyst price target of $19.33 and a 52-week trading range of $12.82 to $19.48.

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