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HP Enterprise (HPE) Reports Q3 Earnings: What Key Metrics Have to Say
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For the quarter ended July 2023, Hewlett Packard Enterprise (HPE - Free Report) reported revenue of $7 billion, up 0.7% over the same period last year. EPS came in at $0.49, compared to $0.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $6.98 billion, representing a surprise of +0.35%. The company delivered an EPS surprise of +6.52%, with the consensus EPS estimate being $0.46.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $873 million versus the four-analyst average estimate of $864 million. The reported number represents a year-over-year change of +6.9%.
Revenue- Corporate Investments and other: $318 million versus the four-analyst average estimate of $294.11 million. The reported number represents a year-over-year change of +6%.
Elimination of intersegment net revenue and other: -$138 million compared to the -$127.06 million average estimate based on four analysts. The reported number represents a change of +48.4% year over year.
Revenue- Storage: $1.07 billion compared to the $1.08 billion average estimate based on four analysts. The reported number represents a change of -6.8% year over year.
Revenue- Compute: $2.62 billion versus $2.70 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -12.7% change.
Revenue- High Performance Computing & Artificial Intelligence: $836 million versus the four-analyst average estimate of $868.29 million. The reported number represents a year-over-year change of +0.7%.
Revenue- Intelligent Edge: $1.42 billion versus $1.31 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +50.4% change.
Earnings from Operations- Financial Services: $73 million versus the three-analyst average estimate of $76.18 million.
Earnings from Operations- Corporate Investments and other: -$38 million compared to the -$41.20 million average estimate based on three analysts.
Earnings from Operations- Storage: $115 million versus the three-analyst average estimate of $107.38 million.
Earnings from Operations- Compute: $285 million versus the three-analyst average estimate of $344.13 million.
Earnings from Operations- High Performance Computing & Artificial Intelligence: -$7 million versus the three-analyst average estimate of $34.44 million.
Shares of HP Enterprise have returned -3.4% over the past month versus the Zacks S&P 500 composite's -3.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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HP Enterprise (HPE) Reports Q3 Earnings: What Key Metrics Have to Say
For the quarter ended July 2023, Hewlett Packard Enterprise (HPE - Free Report) reported revenue of $7 billion, up 0.7% over the same period last year. EPS came in at $0.49, compared to $0.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $6.98 billion, representing a surprise of +0.35%. The company delivered an EPS surprise of +6.52%, with the consensus EPS estimate being $0.46.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $873 million versus the four-analyst average estimate of $864 million. The reported number represents a year-over-year change of +6.9%.
- Revenue- Corporate Investments and other: $318 million versus the four-analyst average estimate of $294.11 million. The reported number represents a year-over-year change of +6%.
- Elimination of intersegment net revenue and other: -$138 million compared to the -$127.06 million average estimate based on four analysts. The reported number represents a change of +48.4% year over year.
- Revenue- Storage: $1.07 billion compared to the $1.08 billion average estimate based on four analysts. The reported number represents a change of -6.8% year over year.
- Revenue- Compute: $2.62 billion versus $2.70 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -12.7% change.
- Revenue- High Performance Computing & Artificial Intelligence: $836 million versus the four-analyst average estimate of $868.29 million. The reported number represents a year-over-year change of +0.7%.
- Revenue- Intelligent Edge: $1.42 billion versus $1.31 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +50.4% change.
- Earnings from Operations- Financial Services: $73 million versus the three-analyst average estimate of $76.18 million.
- Earnings from Operations- Corporate Investments and other: -$38 million compared to the -$41.20 million average estimate based on three analysts.
- Earnings from Operations- Storage: $115 million versus the three-analyst average estimate of $107.38 million.
- Earnings from Operations- Compute: $285 million versus the three-analyst average estimate of $344.13 million.
- Earnings from Operations- High Performance Computing & Artificial Intelligence: -$7 million versus the three-analyst average estimate of $34.44 million.
View all Key Company Metrics for HP Enterprise here>>>Shares of HP Enterprise have returned -3.4% over the past month versus the Zacks S&P 500 composite's -3.1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.