Hewlett Packard Enterprise (HPE) Reports Earnings Tomorrow: What To Expect

Enterprise technology company Hewlett Packard Enterprise (NYSE:HPE) will be reporting earnings this Wednesday after market close. Here’s what investors should know.

Hewlett Packard Enterprise beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $7.63 billion, up 5.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ ARR estimates and a beat of analysts’ EPS estimates.

Is Hewlett Packard Enterprise a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Hewlett Packard Enterprise’s revenue to grow 10.8% year on year to $8.54 billion, in line with the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hewlett Packard Enterprise has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Hewlett Packard Enterprise’s peers in the hardware & infrastructure segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Pure Storage delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 1.7%, and IonQ reported revenues up 81.8%, topping estimates by 21.5%. Pure Storage traded up 32.3% following the results while IonQ was down 1.7%.

Read our full analysis of Pure Storage’s results here and IonQ’s results here.

There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 4.9% on average over the last month. Hewlett Packard Enterprise is up 13% during the same time and is heading into earnings with an average analyst price target of $23.60 (compared to the current share price of $22.63).

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