Hewlett Packard Enterprise Shares Jump 11% Following Q2 Beat

Hewlett Packard Enterprise (NYSE:HPE) is a global technology company that provides solutions in IT infrastructure, software, and services. It focuses on helping businesses transform their operations through technology. HPE competes with other tech giants like Dell Technologies and IBM. The company is known for its strong presence in the enterprise market, offering products and services that cater to various business needs.

On June 3, 2025, HPE reported earnings per share (EPS) of $0.38, surpassing the estimated $0.34. This performance reflects the company's ability to exceed market expectations, as highlighted by its revenue of $7.63 billion, which also exceeded the estimated $7.50 billion. The revenue marked a 6% increase compared to the previous year, showcasing HPE's growth trajectory despite challenges in the global market.

Despite a decrease in adjusted net income to $545 million from $561 million in the same quarter last year, HPE's EPS still surpassed estimates. This achievement is significant, considering the company's impairment charge of $1.36 billion during the period. Following the earnings announcement, HPE shares rose by over 3% in after-hours trading, although they were down 17% for the year up to that point.

Looking ahead, HPE has adjusted its full-year profit forecast, raising the lower end of its adjusted EPS guidance to $1.78 from $1.70. This aligns with Wall Street's expectations and reflects the company's positive outlook, partly due to a recent tariff exemption. HPE's third-quarter revenue forecast of $8.2 billion to $8.5 billion also exceeded analysts' predictions, indicating continued growth potential.

HPE's financial metrics provide further insight into its market position. With a price-to-earnings (P/E) ratio of 8.33 and a price-to-sales ratio of 0.74, the market values HPE's earnings and sales favorably. The enterprise value to sales ratio of 0.89 and enterprise value to operating cash flow ratio of 7.12 highlight the company's valuation relative to its sales and cash flow generation. Additionally, HPE's debt-to-equity ratio of 0.71 and current ratio of 1.33 indicate a moderate level of debt and healthy liquidity, respectively.

Hewlett Packard Enterprise (NYSE:HPE) is preparing to announce its quarterly earnings on June 3, 2025. Analysts predict an earnings per share (EPS) of $0.34, with revenue expected to be around $7.47 billion. HPE, a key player in the technology sector, provides solutions in IT infrastructure, software, and services. It competes with companies like Dell Technologies and IBM.

The anticipated EPS of $0.34 marks a 19.1% decline from the previous year, highlighting some challenges HPE faces. Despite this, revenue is projected to increase by 3.7% to $7.47 billion, as highlighted by the recent analyst consensus. This upward revision of EPS by 0.7% over the past month suggests a positive reassessment by analysts, which can influence investor sentiment and stock price movements.

HPE is currently dealing with several challenges, including delays in its acquisition of Juniper, which affects its free cash flow. Trade and tariff issues also pose hurdles. Despite these challenges, HPE's valuation remains attractive, with a forward P/E ratio under 10 and a strong dividend yield. However, this valuation reflects limited growth expectations and ongoing business challenges.

Activist investor Elliott Management's $1.5 billion stake in HPE could lead to significant changes within the company. However, concerns about leadership uncertainty and execution risks persist. HPE's financial metrics, such as a P/E ratio of 8.31 and a price-to-sales ratio of 0.74, indicate the market's valuation of its earnings and sales. The company's enterprise value to sales ratio of 0.89 and enterprise value to operating cash flow ratio of 7.11 provide insights into its valuation relative to sales and cash flow generation.

HPE's earnings yield of 12.03% offers a perspective on the return on investment, while its debt-to-equity ratio of 0.71 shows the proportion of debt used to finance its assets. The current ratio of 1.33 suggests that HPE has a good level of liquidity to cover its short-term liabilities, indicating financial stability despite the challenges it faces.

Hewlett Packard Enterprise (NYSE:HPE) saw its shares tumble over 15% intra-day today after delivering a mixed fiscal first-quarter report and issuing weaker-than-expected guidance. The company also announced job cuts, adding to investor concerns.

For the quarter, HPE posted adjusted earnings per share (EPS) of $0.49, narrowly missing Wall Street estimates of $0.50. However, revenue came in at $7.85 billion, slightly surpassing the consensus estimate of $7.81 billion and marking a 16% year-over-year increase.

CEO Antonio Neri highlighted that the company achieved its fourth consecutive quarter of year-over-year revenue growth, with double-digit gains in Q1. Despite this, profitability took a hit, as non-GAAP gross margin fell 680 basis points year-over-year to 29.4%.

HPE’s outlook significantly dampened investor sentiment. The company expects second-quarter adjusted EPS in the range of $0.28-$0.34, far below the analyst consensus of $0.50. Revenue guidance of $7.2-$7.6 billion also missed expectations of $7.93 billion.

For the full fiscal year 2025, HPE forecasted adjusted EPS of $1.70-$1.90, trailing Wall Street’s projection of $2.13. Revenue is projected to grow by 7-11% in constant currency, while non-GAAP operating profit growth is expected to range between -10% and 0%.

Adding to the disappointment, HPE provided an operating margin forecast of around 9% at the midpoint, falling short of the 10.7% consensus estimate. With weaker earnings projections and ongoing margin compression, the market reacted sharply, leading to a steep sell-off in HPE shares.

Hewlett Packard Enterprise (NYSE:HPE) saw its shares tumble over 15% intra-day today after delivering a mixed fiscal first-quarter report and issuing weaker-than-expected guidance. The company also announced job cuts, adding to investor concerns.

For the quarter, HPE posted adjusted earnings per share (EPS) of $0.49, narrowly missing Wall Street estimates of $0.50. However, revenue came in at $7.85 billion, slightly surpassing the consensus estimate of $7.81 billion and marking a 16% year-over-year increase.

CEO Antonio Neri highlighted that the company achieved its fourth consecutive quarter of year-over-year revenue growth, with double-digit gains in Q1. Despite this, profitability took a hit, as non-GAAP gross margin fell 680 basis points year-over-year to 29.4%.

HPE’s outlook significantly dampened investor sentiment. The company expects second-quarter adjusted EPS in the range of $0.28-$0.34, far below the analyst consensus of $0.50. Revenue guidance of $7.2-$7.6 billion also missed expectations of $7.93 billion.

For the full fiscal year 2025, HPE forecasted adjusted EPS of $1.70-$1.90, trailing Wall Street’s projection of $2.13. Revenue is projected to grow by 7-11% in constant currency, while non-GAAP operating profit growth is expected to range between -10% and 0%.

Adding to the disappointment, HPE provided an operating margin forecast of around 9% at the midpoint, falling short of the 10.7% consensus estimate. With weaker earnings projections and ongoing margin compression, the market reacted sharply, leading to a steep sell-off in HPE shares.

Hewlett Packard Enterprise (NYSE:HPE) saw its shares climb over 9% intra-day today after delivering fourth-quarter results that slightly exceeded expectations and offering guidance for the upcoming quarter that aligned with analyst projections.

For the quarter, HPE reported adjusted earnings per share of $0.58, surpassing the Street consensus estimate of $0.56. Revenue hit a record $8.5 billion, marking a 15% year-over-year increase and outpacing analysts' forecast of $8.26 billion.

The company's growth was propelled by strong performances in its server and hybrid cloud divisions. Server revenue surged 32% year-over-year to $4.7 billion, while hybrid cloud revenue grew 18% to reach $1.6 billion, showcasing the strength of its diversified enterprise solutions portfolio.

Looking ahead, HPE projected first-quarter 2025 adjusted earnings per share to range from $0.47 to $0.52, in line with the Street consensus estimate of $0.48. The company also expects mid-teens percentage revenue growth year-over-year in the upcoming quarter.

Hewlett Packard Enterprise (NYSE:HPE) saw its shares climb over 9% intra-day today after delivering fourth-quarter results that slightly exceeded expectations and offering guidance for the upcoming quarter that aligned with analyst projections.

For the quarter, HPE reported adjusted earnings per share of $0.58, surpassing the Street consensus estimate of $0.56. Revenue hit a record $8.5 billion, marking a 15% year-over-year increase and outpacing analysts' forecast of $8.26 billion.

The company's growth was propelled by strong performances in its server and hybrid cloud divisions. Server revenue surged 32% year-over-year to $4.7 billion, while hybrid cloud revenue grew 18% to reach $1.6 billion, showcasing the strength of its diversified enterprise solutions portfolio.

Looking ahead, HPE projected first-quarter 2025 adjusted earnings per share to range from $0.47 to $0.52, in line with the Street consensus estimate of $0.48. The company also expects mid-teens percentage revenue growth year-over-year in the upcoming quarter.

Hewlett Packard Enterprise (NYSE:HPE) is a global technology company that provides solutions in IT infrastructure, software, and services. It competes with other tech giants like IBM and Dell Technologies. On December 5, 2024, HPE reported its fourth-quarter earnings, showcasing strong financial performance that exceeded market expectations.

HPE reported earnings per share (EPS) of $0.58, surpassing the estimated $0.55. This represents a 5.45% surprise over expectations and an increase from $0.52 in the same quarter last year. The company has consistently outperformed consensus EPS estimates over the past four quarters, demonstrating its ability to deliver strong financial results.

The company also reported revenue of $8.46 billion, exceeding the estimated $8.25 billion. This revenue figure marks a significant year-over-year increase of 15.1% from $7.35 billion in the same period last year. HPE's performance highlights its strong position within the Zacks Computer - Integrated Systems industry, as it continues to grow its revenue base.

HPE's financial metrics further illustrate its market position. With a price-to-earnings (P/E) ratio of approximately 11.12, the market values its earnings favorably. The price-to-sales ratio of about 0.93 indicates that investors are paying less than one dollar for each dollar of sales, suggesting an attractive valuation. Additionally, the company's enterprise value to sales ratio is around 1.05, reflecting its total valuation relative to sales.

The company's financial health is supported by a debt-to-equity ratio of approximately 0.74, indicating a moderate level of debt compared to its equity. HPE maintains a current ratio of about 1.29, suggesting a solid ability to cover its short-term liabilities with its short-term assets. These metrics, combined with an earnings yield of about 8.99%, highlight HPE's strong financial position and potential for future growth.