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For the first quarter, Hewlett Packard projects non-GAAP earnings per share between 42 cents and 50 cents. The Zacks Consensus Estimate for earnings is pegged at 45 cents, indicating a year-over-year decline of 28.6%.
HPE expects first-quarter revenues between $6.9 billion and $7.3 billion. The consensus mark for quarterly revenues is pegged at $7.07 billion, suggesting a decrease of 9.5% from the year-ago period.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 10.6%.
Hewlett Packard Enterprise Company Price and EPS Surprise
Hewlett Packard’s first-quarter performance is expected to have been hurt by a soft IT spending environment. Higher interest rates and inflationary pressures are hurting consumer spending. On the other hand, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Moreover, unfavorable foreign currency exchange rates and higher expenses are likely to have affected sales growth and profitability.
Nonetheless, robust momentum in the as-a-service platform and notable contributions from growth businesses, such as high-performance computing & modular cooling systems and Intelligent Edge, are likely to have somewhat offset the negative impact of soft IT spending.
Fast-paced digital transformation and growing demand for cloud networking, driven by increasing hybrid working trends, are likely to have contributed to the first-quarter revenues. The solid adoption of the Aruba Edge Services Platform, which provides edge-to-cloud connectivity as a service, and its cloud services arm, HPE GreenLake, are likely to have driven the first quarter’s revenues. In the fourth-quarter earnings report, it was highlighted that the orders for HPE’s accelerated processing units, which make up 32% of server-based orders, increased 250% compared with the beginning of fiscal 2023
The company’s gross margin is likely to have improved during the quarter, driven by a strong pricing discipline that is likely to have somewhat mitigated logistic costs, the benefits of an improving supply chain, a positive mix shift to high-margin software-rich businesses, cost takeouts and automation.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Hewlett Packard Enterprise 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. However, that’s not the case here.
Hewlett Packard currently has an Earnings ESP of -4.09% and carries a Zacks Rank #3. 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, SEMrush (SEMR - Free Report) , SentinelOne (S - Free Report) and The Gap (GPS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
SEMrush has an Earnings ESP of +23.08% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Mar 4. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while matching the same on the other two occasions, the average surprise being 112.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SEMR’s fourth-quarter earnings has remained unchanged at 3 cents per share for the past 90 days. The consensus mark for revenues is pegged at $83.19 million, suggesting a year-over-year increase of 20.93%.
SentinelOne has an Earnings ESP of +16.30% and carries a Zacks Rank #3 at present. The company is scheduled to report fourth-quarter fiscal 2024 results on Mar 13. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 33.54%.
The Zacks Consensus Estimate is pegged at a loss of 4 cents per share, suggesting growth of 69.23% from the prior-year quarter. The consensus mark for revenues is pegged at $169.5 million, suggesting a year-over-year increase of 34.42%.
The Gap has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Mar 7. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 137.89%.
The Zacks Consensus Estimate for GPS’ fourth-quarter earnings is pegged at 19 cents per share, indicating a surge of 125.33% from the prior-year quarter. The consensus mark for revenues is pegged at $4.21 billion, suggesting a year-over-year decrease of 0.68%.
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Hewlett Packard (HPE) to Report Q1 Earnings: What's in Store?
Hewlett Packard Enterprise (HPE - Free Report) is slated to report first-quarter fiscal 2024 results on Feb 29 after market close.
For the first quarter, Hewlett Packard projects non-GAAP earnings per share between 42 cents and 50 cents. The Zacks Consensus Estimate for earnings is pegged at 45 cents, indicating a year-over-year decline of 28.6%.
HPE expects first-quarter revenues between $6.9 billion and $7.3 billion. The consensus mark for quarterly revenues is pegged at $7.07 billion, suggesting a decrease of 9.5% from the year-ago period.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 10.6%.
Hewlett Packard Enterprise Company Price and EPS Surprise
Hewlett Packard Enterprise Company price-eps-surprise | Hewlett Packard Enterprise Company Quote
Factors to Note
Hewlett Packard’s first-quarter performance is expected to have been hurt by a soft IT spending environment. Higher interest rates and inflationary pressures are hurting consumer spending. On the other hand, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
Moreover, unfavorable foreign currency exchange rates and higher expenses are likely to have affected sales growth and profitability.
Nonetheless, robust momentum in the as-a-service platform and notable contributions from growth businesses, such as high-performance computing & modular cooling systems and Intelligent Edge, are likely to have somewhat offset the negative impact of soft IT spending.
Fast-paced digital transformation and growing demand for cloud networking, driven by increasing hybrid working trends, are likely to have contributed to the first-quarter revenues. The solid adoption of the Aruba Edge Services Platform, which provides edge-to-cloud connectivity as a service, and its cloud services arm, HPE GreenLake, are likely to have driven the first quarter’s revenues. In the fourth-quarter earnings report, it was highlighted that the orders for HPE’s accelerated processing units, which make up 32% of server-based orders, increased 250% compared with the beginning of fiscal 2023
The company’s gross margin is likely to have improved during the quarter, driven by a strong pricing discipline that is likely to have somewhat mitigated logistic costs, the benefits of an improving supply chain, a positive mix shift to high-margin software-rich businesses, cost takeouts and automation.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Hewlett Packard Enterprise 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. However, that’s not the case here.
Hewlett Packard currently has an Earnings ESP of -4.09% and carries a Zacks Rank #3. 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, SEMrush (SEMR - Free Report) , SentinelOne (S - Free Report) and The Gap (GPS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
SEMrush has an Earnings ESP of +23.08% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Mar 4. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while matching the same on the other two occasions, the average surprise being 112.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SEMR’s fourth-quarter earnings has remained unchanged at 3 cents per share for the past 90 days. The consensus mark for revenues is pegged at $83.19 million, suggesting a year-over-year increase of 20.93%.
SentinelOne has an Earnings ESP of +16.30% and carries a Zacks Rank #3 at present. The company is scheduled to report fourth-quarter fiscal 2024 results on Mar 13. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 33.54%.
The Zacks Consensus Estimate is pegged at a loss of 4 cents per share, suggesting growth of 69.23% from the prior-year quarter. The consensus mark for revenues is pegged at $169.5 million, suggesting a year-over-year increase of 34.42%.
The Gap has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Mar 7. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 137.89%.
The Zacks Consensus Estimate for GPS’ fourth-quarter earnings is pegged at 19 cents per share, indicating a surge of 125.33% from the prior-year quarter. The consensus mark for revenues is pegged at $4.21 billion, suggesting a year-over-year decrease of 0.68%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.