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Compared to Estimates, HP Enterprise (HPE) Q2 Earnings: A Look at Key Metrics
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For the quarter ended April 2023, Hewlett Packard Enterprise (HPE - Free Report) reported revenue of $6.97 billion, up 3.9% over the same period last year. EPS came in at $0.52, compared to $0.44 in the year-ago quarter.
The reported revenue represents a surprise of -4.26% over the Zacks Consensus Estimate of $7.28 billion. With the consensus EPS estimate being $0.47, the EPS surprise was +10.64%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how HP Enterprise performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Financial Services: $858 million compared to the $846.27 million average estimate based on four analysts. The reported number represents a change of +4.3% year over year.
Revenue- Corporate Investments and other: $296 million versus $291.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -9.5% change.
Elimination of intersegment net revenue and other: -$129 million versus -$141.72 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +33% change.
Revenue- Storage: $1.04 billion versus the four-analyst average estimate of $1.13 billion. The reported number represents a year-over-year change of -5%.
Revenue- Compute: $2.76 billion versus the four-analyst average estimate of $3.25 billion. The reported number represents a year-over-year change of -7.5%.
Revenue- High Performance Computing & Artificial Intelligence: $840 million versus the four-analyst average estimate of $812.47 million. The reported number represents a year-over-year change of +18.3%.
Revenue- Intelligent Edge: $1.30 billion compared to the $1.05 billion average estimate based on four analysts. The reported number represents a change of +50.4% year over year.
Earnings from Operations- Financial Services: $84 million compared to the $80.49 million average estimate based on three analysts.
Earnings from Operations- Corporate Investments and other: -$47 million compared to the -$31.74 million average estimate based on three analysts.
Earnings from Operations- Storage: $82 million compared to the $152.92 million average estimate based on three analysts.
Earnings from Operations- Compute: $420 million compared to the $416.79 million average estimate based on three analysts.
Earnings from Operations- High Performance Computing & Artificial Intelligence: -$2 million compared to the $19.59 million average estimate based on three analysts.
Shares of HP Enterprise have returned +6.2% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, HP Enterprise (HPE) Q2 Earnings: A Look at Key Metrics
For the quarter ended April 2023, Hewlett Packard Enterprise (HPE - Free Report) reported revenue of $6.97 billion, up 3.9% over the same period last year. EPS came in at $0.52, compared to $0.44 in the year-ago quarter.
The reported revenue represents a surprise of -4.26% over the Zacks Consensus Estimate of $7.28 billion. With the consensus EPS estimate being $0.47, the EPS surprise was +10.64%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how HP Enterprise performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Financial Services: $858 million compared to the $846.27 million average estimate based on four analysts. The reported number represents a change of +4.3% year over year.
- Revenue- Corporate Investments and other: $296 million versus $291.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -9.5% change.
- Elimination of intersegment net revenue and other: -$129 million versus -$141.72 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +33% change.
- Revenue- Storage: $1.04 billion versus the four-analyst average estimate of $1.13 billion. The reported number represents a year-over-year change of -5%.
- Revenue- Compute: $2.76 billion versus the four-analyst average estimate of $3.25 billion. The reported number represents a year-over-year change of -7.5%.
- Revenue- High Performance Computing & Artificial Intelligence: $840 million versus the four-analyst average estimate of $812.47 million. The reported number represents a year-over-year change of +18.3%.
- Revenue- Intelligent Edge: $1.30 billion compared to the $1.05 billion average estimate based on four analysts. The reported number represents a change of +50.4% year over year.
- Earnings from Operations- Financial Services: $84 million compared to the $80.49 million average estimate based on three analysts.
- Earnings from Operations- Corporate Investments and other: -$47 million compared to the -$31.74 million average estimate based on three analysts.
- Earnings from Operations- Storage: $82 million compared to the $152.92 million average estimate based on three analysts.
- Earnings from Operations- Compute: $420 million compared to the $416.79 million average estimate based on three analysts.
- Earnings from Operations- High Performance Computing & Artificial Intelligence: -$2 million compared to the $19.59 million average estimate based on three analysts.
View all Key Company Metrics for HP Enterprise here>>>Shares of HP Enterprise have returned +6.2% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.