Hewlett Packard Enterprise (NYSE:HPE) Quarterly Earnings Preview

Hewlett Packard Enterprise Co (NYSE:HPE) is a global technology company that provides solutions in IT infrastructure, software, and services. It competes with major players like Cisco Systems in the networking and server markets. Recently, Bank of America Securities maintained a "Buy" rating for HPE, with the stock priced at around $20.59, suggesting confidence in its future performance.

The U.S. Department of Justice (DOJ) has approved HPE's $14 billion all-cash acquisition of Juniper Networks, a strategic move that strengthens HPE's position against competitors like Cisco. This settlement allows HPE to proceed with the acquisition, enhancing its capabilities in the server market. The DOJ initially opposed the merger due to competition concerns but reached a settlement with HPE and Juniper.

As part of the settlement, HPE agreed to divest its global Instant On campus and branch WLAN business. Additionally, it will provide limited access to Juniper's Mist AI Ops technology to competitors. This ensures the transaction's value remains intact while fostering competition in the global networking market, as highlighted by HPE CEO Antonio Neri.

Following the DOJ's approval, HPE's stock experienced a significant rise, increasing by 12.5% to approximately $21. The stock has fluctuated between $20.13 and $20.97 during the day, with a market capitalization of about $26.97 billion. The trading volume reached 39.57 million shares, reflecting investor interest in the company's strategic moves.

HPE's stock has seen a 11.65% increase, with a change of $2.15, indicating positive market sentiment. Over the past year, the stock has ranged from a low of $11.97 to a high of $24.66. This recent development positions HPE to better compete in the tech industry, particularly in the server and networking sectors.

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.