What to Expect When Hewlett Packard Enterprise Reports After the Close?

Technology

Published: December 4, 2018 11:25 am

Last Updated: January 11, 2020 2:09 pm

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 $0.43 in earnings per share (EPS) and $7.84 billion in revenue. The fiscal fourth quarter of last year reportedly had $0.31 in EPS and $7.66 billion in revenue.

In its most recent quarter, the company issued guidance calling for EPS in the range of $0.39 to $0.44.

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

Hybrid IT revenue was $6.2 billion, up 3% year over year and flat when adjusted for currency, with a 10.6% operating margin. Compute revenue was up 5%, up 2% when adjusted for currency, Storage revenue was up 1%, down 2% when adjusted for currency, DC Networking revenue was down 6%, down 10% when adjusted for currency, and HPE Pointnext revenue was down 1%, down 2% when adjusted for currency.

Intelligent Edge revenue was $785 million, up 10% year over year and up 8% when adjusted for currency, with an 11.6% operating margin. HPE Aruba Product revenue was up 10%, up 7% when adjusted for currency, and HPE Aruba Services revenue was up 14%, up 14% when adjusted for currency.

Financial Services revenue was $928 million, up 3% year over year and up 3% when adjusted for currency, net portfolio assets were flat year over year, and financing volume was up 15% year over year. The business delivered an operating margin of 7.9%.

Excluding Tuesday’s move, Hewlett Packard Enterprise had more or less performed in line with the broad markets, with its stock up about 7% in the past 52 weeks. In just 2018 alone, the stock was up about 8%.

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

Raymond James has an Outperform rating and an $18 price target.
Oppenheimer has a Buy rating with an $18 price target.
UBS has a Hold rating with a $17 price target.
BMO Capital Markets has a Market Perform rating and an $18 target.
Deutsche Bank has a Buy rating with a $23 price target.

Shares of Hewlett Packard Enterprise were last seen down 1% at $15.35, in a 52-week range of $13.99 to $19.48. The consensus analyst price target is $18.42.