Enterprise technology company Hewlett Packard Enterprise (NYSE:HPE) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Hewlett Packard Enterprise beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $8.46 billion, up 15.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ ARR estimates but revenue guidance for next quarter missing analysts’ expectations.
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 15.6% year on year to $7.81 billion, a reversal from the 13.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Analysts covering the company have generally 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 five times over the last two years.
Looking at Hewlett Packard Enterprise’s peers in the hardware & infrastructure segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Pure Storage delivered year-on-year revenue growth of 11.4%, beating analysts’ expectations by 1.2%, and HP reported revenues up 2.4%, topping estimates by 1.1%. Pure Storage traded down 14.8% following the results while HP was also down 6.8%.
Read our full analysis of Pure Storage’s results here and HP’s results here.
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