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Factors to Note Ahead of Hewlett Packard (HPE) Q1 Earnings
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Hewlett Packard Enterprise (HPE - Free Report) is slated to report first-quarter fiscal 2023 results after market close on Mar 2.
For the first quarter, Hewlett Packard projects non-GAAP earnings between 50 cents and 58 cents per share. The Zacks Consensus Estimate for earnings is pegged at 52 cents, indicating year-over-year decline of 1.9%.
HPE expects first-quarter revenues between $7.2 billion and $7.6 billion. The consensus mark for quarterly revenues stands at $7.40 billion, suggesting an increase of 6.4% from the year-ago period.
The company’s earnings surpassed Zacks Consensus Estimate once in the trailing four quarters, matched twice and missed on one occasion, the average beat being 3.3%.
Hewlett Packard Enterprise Company Price and EPS Surprise
HPE’s fiscal first-quarter performance is likely to have benefited from strong momentum in the as-a-service platform and significant contributions from growth businesses, such as high-performance computing & modular cooling systems and Intelligent Edge. In the fourth quarter of fiscal 2022, total as-a-service orders grew more than 33% year over year, which represented roughly 12% of total bookings.
Accelerated digital transformation and higher demand for cloud networking due to the continuous hybrid working trend are likely to have contributed to the first quarter top line. Solid adoption of Aruba Edge Services Platform, which provides edge-to-cloud connectivity as a service and its cloud services arm, HPE GreenLake, might have driven the to-be-reported quarter’s revenues.
Hewlett Packard’s gross margin is likely to have improved during the quarter, driven by a strong pricing discipline that would have mitigated the logistic costs, benefits from an improving supply chain base, a positive mix shift toward high-margin software-rich businesses, cost takeouts and automation.
However, HPE expects to continue facing higher commodity costs, foreign-exchange headwinds, and increased shipping fees for the next few quarters. These factors are likely to have negatively impacted its sales growth and profitability in the quarter under review.
What Our Model States
Our proven model does not conclusively predict an earnings beat for Hewlett Packard this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Hewlett Packard has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Catalyst Pharmaceuticals (CPRX - Free Report) , Rapt Therapeutics (RAPT - Free Report) and Ulta Beauty (ULTA - Free Report) have the right combination of elements to post earnings beat in their upcoming releases.
Catalyst Pharmaceuticals has an Earnings ESP of +6.80% and sports a Zacks Rank #1 at present. The company is likely to report its fourth-quarter 2022 results on Mar 15. CPRX’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being negative 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CPRX’s fourth-quarter earnings is pegged at 21 cents per share, indicating 133.3% surge from the year-ago quarter’s earnings of 9 cents. The consensus mark for revenues stands at $60.3 million, suggesting a year-over-year increase of 57.4%.
Rapt Therapeutics has an Earnings ESP of +5.41% and currently has a Zacks Rank #2. The company is expected to report its fourth-quarter 2022 results on Mar 9. RAPT’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.9%.
The Zacks Consensus Estimate for RAPT’s fourth-quarter loss stands at 67 cents per share, implying a year-over-year decline of 9.8%. The company is estimated to report revenues of $0.76 million, which is in line with the year-ago quarter.
Ulta Beauty has an Earnings ESP of +8.53% and carries a Zacks Rank #2 at present. The company is set to report fourth-quarter fiscal 2023 results on Mar 9. ULTA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 26.2%.
The Zacks Consensus Estimate for ULTA’s quarterly earnings is pegged at $5.53 per share, suggesting a year-over-year increase of 2.2%. Its quarterly revenues are estimated to increase 10.3% year over year to $3.01 billion.
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Factors to Note Ahead of Hewlett Packard (HPE) Q1 Earnings
Hewlett Packard Enterprise (HPE - Free Report) is slated to report first-quarter fiscal 2023 results after market close on Mar 2.
For the first quarter, Hewlett Packard projects non-GAAP earnings between 50 cents and 58 cents per share. The Zacks Consensus Estimate for earnings is pegged at 52 cents, indicating year-over-year decline of 1.9%.
HPE expects first-quarter revenues between $7.2 billion and $7.6 billion. The consensus mark for quarterly revenues stands at $7.40 billion, suggesting an increase of 6.4% from the year-ago period.
The company’s earnings surpassed Zacks Consensus Estimate once in the trailing four quarters, matched twice and missed on one occasion, the average beat being 3.3%.
Hewlett Packard Enterprise Company Price and EPS Surprise
Hewlett Packard Enterprise Company price-eps-surprise | Hewlett Packard Enterprise Company Quote
Factors to Note
HPE’s fiscal first-quarter performance is likely to have benefited from strong momentum in the as-a-service platform and significant contributions from growth businesses, such as high-performance computing & modular cooling systems and Intelligent Edge. In the fourth quarter of fiscal 2022, total as-a-service orders grew more than 33% year over year, which represented roughly 12% of total bookings.
Accelerated digital transformation and higher demand for cloud networking due to the continuous hybrid working trend are likely to have contributed to the first quarter top line. Solid adoption of Aruba Edge Services Platform, which provides edge-to-cloud connectivity as a service and its cloud services arm, HPE GreenLake, might have driven the to-be-reported quarter’s revenues.
Hewlett Packard’s gross margin is likely to have improved during the quarter, driven by a strong pricing discipline that would have mitigated the logistic costs, benefits from an improving supply chain base, a positive mix shift toward high-margin software-rich businesses, cost takeouts and automation.
However, HPE expects to continue facing higher commodity costs, foreign-exchange headwinds, and increased shipping fees for the next few quarters. These factors are likely to have negatively impacted its sales growth and profitability in the quarter under review.
What Our Model States
Our proven model does not conclusively predict an earnings beat for Hewlett Packard this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Hewlett Packard has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Catalyst Pharmaceuticals (CPRX - Free Report) , Rapt Therapeutics (RAPT - Free Report) and Ulta Beauty (ULTA - Free Report) have the right combination of elements to post earnings beat in their upcoming releases.
Catalyst Pharmaceuticals has an Earnings ESP of +6.80% and sports a Zacks Rank #1 at present. The company is likely to report its fourth-quarter 2022 results on Mar 15. CPRX’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being negative 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CPRX’s fourth-quarter earnings is pegged at 21 cents per share, indicating 133.3% surge from the year-ago quarter’s earnings of 9 cents. The consensus mark for revenues stands at $60.3 million, suggesting a year-over-year increase of 57.4%.
Rapt Therapeutics has an Earnings ESP of +5.41% and currently has a Zacks Rank #2. The company is expected to report its fourth-quarter 2022 results on Mar 9. RAPT’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.9%.
The Zacks Consensus Estimate for RAPT’s fourth-quarter loss stands at 67 cents per share, implying a year-over-year decline of 9.8%. The company is estimated to report revenues of $0.76 million, which is in line with the year-ago quarter.
Ulta Beauty has an Earnings ESP of +8.53% and carries a Zacks Rank #2 at present. The company is set to report fourth-quarter fiscal 2023 results on Mar 9. ULTA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 26.2%.
The Zacks Consensus Estimate for ULTA’s quarterly earnings is pegged at $5.53 per share, suggesting a year-over-year increase of 2.2%. Its quarterly revenues are estimated to increase 10.3% year over year to $3.01 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.