What to Expect When Hewlett Packard Enterprise Reports After the Close
Hewlett Packard Enterprise is set to release its most recent quarterly results after the markets close on Thursday.
Hewlett Packard Enterprise Co. (NYSE: HPE) is set to release its most recent quarterly results after the markets close on Thursday. The consensus estimates from Thomson Reuters call for $0.36 in earnings per share (EPS) and $7.6 billion in revenue. The fiscal first quarter of last year reportedly had $0.34 in EPS and $7.57 billion in revenue.
In its most recent quarter, the company issued guidance of EPS in the range of $0.33 to $0.37.
Also in the fiscal first quarter, the company reported its segment results as follows:
- Intelligent Edge revenue was $814 million, up 17% year over year and up 15% when adjusted for currency, with 10.1% operating margin. HPE Aruba Product revenue was up 17%, up 15% when adjusted for currency, and HPE Aruba Services revenue was up 16%, up 16% when adjusted for currency.
- Hybrid IT revenue was $6.4 billion, up 5% year over year and up 4% when adjusted for currency, with 11.9% operating margin. Compute revenue was up 9%, up 7% when adjusted for currency, Storage revenue was up 6%, up 4% when adjusted for currency, DC Networking revenue was up 2%, down 1% when adjusted for currency, and HPE Pointnext revenue was down 3%, down 3% when adjusted for currency.
- Financial Services revenue was $939 million, down 7% year over year and down 5% when adjusted for currency, net portfolio assets were flat year over year, and financing volume was up 8% year over year. The business delivered an operating margin of 7.8%.
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Excluding Thursday’s move, Hewlett Packard Enterprise has outperformed in line with the broad markets, with its stock up 21% or so year to date. In the past 52 weeks alone, the stock was up only about 2%.
A few analysts weighed in on the stock ahead of the report:
- Morgan Stanley has an Equal Weight rating and a $15 price target.
- Wolfe Research has an Underperform rating.
- Maxim Group has a Hold rating with a $17 price target.
- Oppenheimer has a Buy rating with an $18 price target.
Shares of Hewlett Packard Enterprise were last seen up about 1% at $16.27 on Thursday. The 52-week range is $12.09 to $19.48. The consensus analyst price target is $17.00.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
