Investors are looking forward to an earnings surprise for the fifth consecutive quarter with analysts expecting a 23.30% year-over-year growth. However, growth estimates are likely to fall by 7.77% per annum in the next five years. This could make traders take a cautious stance on Monday and Tuesday ahead of the results.
During the recently completed second-quarter, strong performance across its business segments helped the company swung its results from a loss last year to a profit. The top line growth was driven by an increase in Hybrid IT revenues, improved performance from Financial Services, and double-digit growth in Intelligent Edge division revenues.
For full-year 2018, the company had predicted earnings in the range of $1.70 to $1.80 per share and adjusted earnings of $1.40 to $1.50 per share.
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Investors expect Intelligent Edge, Storage, Hyper-Converged, High-Performance Compute, and Composable Infrastructure to contribute positively to the company’s results for the third quarter.
Zacks Equity Research remained slightly cautious about the company’s near-term prospects due to elevated commodities pricing, fierce competitive pricing pressure, and certain near-term execution issues.
Shares of Hewlett Packard Enterprise ended Friday’s regular session up 0.62% at $16.20 on the NYSE. The stock had risen more than 15% for the past year and more than 12% for the year-to-date.