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Hewlett Packard (HPE) to Post Q3 Earnings: What's in Store?
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Hewlett Packard Enterprise Company (HPE - Free Report) is slated to report third-quarter fiscal 2020 results on Aug 25.
The company didn’t provide the earnings guidance for the third quarter due to economic and business uncertainties caused by the COVID-19 pandemic.
The Zacks Consensus Estimate for fiscal third-quarter earnings is currently pegged at 24 cents, reflecting a year-over-year plunge of 46.7%. The consensus mark for quarterly revenues is currently pinned at $6.14 billion, calling for a 14.9% decrease from the year-ago period.
Hewlett Packard Enterprise Company Price and Consensus
Notably, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average negative surprise being 1.9%.
In the last reported quarter, Hewlett Packard delivered non-GAAP earnings of 22 cents per share, which missed the Zacks Consensus Estimate by 29% as well as came in lower than the prior-year quarter’s 42 cents.
Net revenues of $6 billion declined 16% on a year-over-year basis and missed the Zacks Consensus Estimate by 7.2%. Further, in constant currency (cc), revenues slid 15% year over year.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors at Play
Supply-chain disruptions caused by the coronavirus outbreak in China are expected to have adversely impacted Hewlett Packard’s fiscal third-quarter performance. Notably, China is a key market for the company, and the aforementioned factors might have significantly dampened the company’s server sales in the country.
Organizations are pushing back their big and expensive technology products due to a slowdown in global economic growth, which is a major downside for the fiscal third quarter. Decline in tier-1 server shipments might have been an overhang too. Foreign-exchange headwinds are expected to have been an added concern.
Additionally, more and more organizations continue shifting to cloud computing owing to their maintenance-free and cost-effective structure compared with standalone servers. The trend is likely to have thwarted Hewlett Packard’s financial performance in the quarter under review.
What Our Model Says
Our proven model does not predict an earnings beat for Hewlett Packard this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Hewlett Packard currently carries a Zacks Rank of 5 (Sell) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Ambarella (AMBA - Free Report) has an Earnings ESP of +100.00% and carries a Zacks Rank of 3, at present.
Nutanix (NTNX - Free Report) has an Earnings ESP of +1.97% and currently carries a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
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Hewlett Packard (HPE) to Post Q3 Earnings: What's in Store?
Hewlett Packard Enterprise Company (HPE - Free Report) is slated to report third-quarter fiscal 2020 results on Aug 25.
The company didn’t provide the earnings guidance for the third quarter due to economic and business uncertainties caused by the COVID-19 pandemic.
The Zacks Consensus Estimate for fiscal third-quarter earnings is currently pegged at 24 cents, reflecting a year-over-year plunge of 46.7%. The consensus mark for quarterly revenues is currently pinned at $6.14 billion, calling for a 14.9% decrease from the year-ago period.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
Notably, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average negative surprise being 1.9%.
In the last reported quarter, Hewlett Packard delivered non-GAAP earnings of 22 cents per share, which missed the Zacks Consensus Estimate by 29% as well as came in lower than the prior-year quarter’s 42 cents.
Net revenues of $6 billion declined 16% on a year-over-year basis and missed the Zacks Consensus Estimate by 7.2%. Further, in constant currency (cc), revenues slid 15% year over year.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors at Play
Supply-chain disruptions caused by the coronavirus outbreak in China are expected to have adversely impacted Hewlett Packard’s fiscal third-quarter performance. Notably, China is a key market for the company, and the aforementioned factors might have significantly dampened the company’s server sales in the country.
Organizations are pushing back their big and expensive technology products due to a slowdown in global economic growth, which is a major downside for the fiscal third quarter. Decline in tier-1 server shipments might have been an overhang too. Foreign-exchange headwinds are expected to have been an added concern.
Additionally, more and more organizations continue shifting to cloud computing owing to their maintenance-free and cost-effective structure compared with standalone servers. The trend is likely to have thwarted Hewlett Packard’s financial performance in the quarter under review.
What Our Model Says
Our proven model does not predict an earnings beat for Hewlett Packard this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Hewlett Packard currently carries a Zacks Rank of 5 (Sell) and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Autodesk (ADSK - Free Report) has an Earnings ESP of +4.44% and carries a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ambarella (AMBA - Free Report) has an Earnings ESP of +100.00% and carries a Zacks Rank of 3, at present.
Nutanix (NTNX - Free Report) has an Earnings ESP of +1.97% and currently carries a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>