What to Expect When Hewlett Packard Enterprise Reports After the Close

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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