Categories Earnings, Technology

Hewlett Packard Enterprise expected to post Q2 EPS of $0.36

Information technology giant Hewlett Packard Enterprise (NYSE: HPE) is scheduled to report second-quarter 2019 financial results on Thursday, May 23, after the closing bell. Analysts expect the company to report Q2 earnings of 36 cents per share, on revenues of $7.44 billion, down 0.4% year-over-year.

The Wall Street earnings estimate falls within the management projection for the quarter of 34 to 38 cents per share. It may be noted that the company has surpassed analysts’ estimate in the past four quarters.

Hewlett packard Q1 2019 earnings results

In the last-reported quarter, HPE’s earnings more-than-doubled to $0.34 per share, aided by broad-based demand growth that lifted revenues by 10% to $7.5 billion. Buoyed by the strong results, the management revised up its outlook for the fiscal year.

While Aruba products and services are expected to drive growth in the Intelligent Edge unit, Nimble is likely to push storage revenues. However, the residual impact from the exit of the Tier-1 server business may offset much of the growth in the other units.

Hewlett Packard has also been on a mission to diversify its portfolio. The most recent move in this regard is the acquisition of Cray (NASDAQ: CRAY) for about $1.30 billion, which gives HPE a leeway into the supercomputer business.

The deal values Cray’s stock at $35, representing a premium of about 17%, and is tentatively scheduled to close early next year. It is expected to be accretive to HPE’s adjusted earnings after one full year of completion. Meanwhile, the management has left its free cash flow outlook 
for fiscal 2020 unchanged at $1.9-$2.1 billion, after factoring in the integration costs associated with the transaction.

The acquisition is meaningful in a way that it helps HPE stay relevant in a competitive market that is dominated by the likes of International Business Machines (NYSE: IBM).

HPE shares have gained 13.4% in the year-to-date period. The stock has a 12-month average price target of $16.56, suggesting an 8% upside from the current trading price. Most analysts covering the stock have a Hold rating.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top