Enterprise technology company Hewlett Packard Enterprise (NYSE: HPE) will be reporting results tomorrow afternoon. Here’s what investors should know.
Hewlett Packard Enterprise beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $7.85 billion, up 16.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS guidance for next quarter estimates and a miss of analysts’ EPS estimates.
Is Hewlett Packard Enterprise a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hewlett Packard Enterprise’s revenue to grow 3.5% year on year to $7.46 billion, in line with the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hewlett Packard Enterprise has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Hewlett Packard Enterprise’s peers in the hardware & infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IonQ posted flat year-on-year revenue, beating analysts’ expectations by 0.9%, and Pure Storage reported revenues up 12.3%, topping estimates by 1.1%. IonQ traded up 9.3% following the results while Pure Storage was down 2.6%.
Read our full analysis of IonQ’s results here and Pure Storage’s results here.
There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 4.3% on average over the last month. Hewlett Packard Enterprise is up 4.1% during the same time and is heading into earnings with an average analyst price target of $19.98 (compared to the current share price of $17.35).
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