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With a market cap of $30.2 billion, Hewlett Packard Enterprise Company (HPE) is a global edge-to-cloud company that provides innovative solutions across Cloud Services, computing, High-Performance Computing (HPC) & AI, Intelligent Edge, Software, and Storage. It empowers businesses worldwide to seamlessly capture and act on data through products like HPE GreenLake, Aruba Networking, and ProLiant servers, delivered via flexible as-a-service models. The Spring, Texas-based company is slated to announce its fiscal Q1 2025 earnings results on Thursday, Mar. 6.
Ahead of this event, analysts expect the personal computer and printer maker to report a profit of $0.43 per share, a 48.3% growth from $0.29 per share in the year-ago quarter. The company has exceeded Wall Street's earnings expectations in two of the past four quarters while missing on two other occasions. In the most recent quarter, HPE surpassed the consensus EPS estimate by a 10.4% margin.
For fiscal 2025, analysts expect HPE to report EPS of $1.85, marking a growth of 6.9% from $1.73 in fiscal 2024. In addition, EPS is expected to grow 9.7% year-over-year to $2.03 in fiscal 2026.
Shares of Hewlett Packard have surged 36.3% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 23.7% gain and the Technology Select Sector SPDR Fund's (XLK) 14.6% return over the same period.
Hewlett Packard Enterprise stock surged 10.6% following its fiscal Q4 earnings release on Dec. 5, as the company exceeded consensus estimates with revenue of $8.5 billion and adjusted EPS of $0.58. Strong demand for data center solutions, including a 32% year-over-year increase in server sales, drove the impressive results, despite a 20% decline in intelligent edge revenue. The rapid adoption of HPE’s GreenLake cloud computing platform boosted Annual Recurring Revenue (ARR) by 48% to $1.9 billion, signaling growth in subscription-based income. Additionally, progress on the Juniper Networks acquisition, expected to contribute half of combined operating profits, further boosted investor optimism.
Analysts' consensus view on HPE stock remains cautiously optimistic, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, seven recommend a "Strong Buy," one "Moderate Buy," and seven give a "Hold" rating. As of writing, HPE is trading below the average analyst price target of $24.50.
