/Hewlett%20Packard%20Enterprise%20Co%20San%20Jose%20campus-by%20Michael%20Vi%20via%20Shutterstock.jpg)
Hewlett Packard Enterprise Company (HPE), headquartered in Houston, Texas, is an information technology solutions company offering a broad range of services across hybrid cloud, data management, and edge computing. With a market cap of $25.6 billion, HPE is set to announce its Q4 earnings on Tuesday, Nov. 26.
Ahead of the event, analysts expect HPE to report a profit of $0.48 per share, down 2% from $0.49 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions.
Its adjusted earnings of $0.45 per share for the last quarter surpassed the consensus estimate by 15.4%. Hewlett Packard Enterprise’s Q3 growth was fueled by AI system conversion and edge-to-cloud strategy execution, boosting revenue and EPS.
For fiscal 2024, analysts expect HPE to report an EPS of $1.66, up 7.8% from $1.54 in fiscal 2023.
HPE stock is up 17% YTD, underperforming the broader S&P 500 Index's ($SPX) 22.3% gains and the iShares U.S. Technology ETF’s (IYW) 28.5% gain over the same time frame.
Shares of Hewlett Packard Enterprise fell over 6% following its Q3 earnings report on Sep. 4. Its adjusted gross margin of 31.8% missed the consensus estimate of 33.4%. The company, however, beat revenue forecasts, posting $7.71 billion compared to the expected $7.67 billion. Also, Hewlett Packard Enterprise anticipates fiscal Q4 revenue between $8.1 billion and $8.4 billion.
However, on Sep. 25, HP Enterprise rose over 4% after Barclays upgraded the stock from an “Equal-Weight” to “Overweight” with a new price target of $24.
The consensus opinion on HPE stock is moderately bullish, with an overall “Moderate Buy” rating. Of 16 analysts covering the stock, five advise a “Strong Buy” rating, one indicates a “Moderate Buy,” and 10 suggest a “Hold.”
HPE's average analyst price target is $21.53, suggesting a potential upside of 8.4% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
