Hewlett Packard Enterprise Q3 Pre-Earnings: Here’s What to Expect

Computer hardware giant Hewlett Packard Enterprise HPE Inc. (HPE) is scheduled to report its third-quarter 2024 financial results on Sept. 4. Wall Street analysts expect the company to report third-quarter earnings of $0.47 per share, down 4% year over year. However, analysts expect revenue to rise 9% from the year-ago figure to $7.66 billion, according to TipRanks data.

It’s important to highlight that the company has surpassed consensus EPS estimates in eight of the last nine quarters.

Key Takeaways from TipRanks’ Bulls & Bears Tool

According to TipRanks’ Bulls Say, Bears Say tool below, analysts are encouraged by HPE’s strong Q2 performance and increased FY24 guidance. They highlight HPE’s efforts to simplify AI adoption with its new private cloud AI solution developed with Nvidia (NVDA). Additionally, the bulls noted that HPE’s cloud services platform, HPE GreenLake, added about 3,000 new customers in Q2.

Meanwhile, bears worry that HPE is lagging behind rivals Super Micro Computer (SMCI) and Dell Technologies (DELL) in sales of servers for AI data centers. They also point to the company facing operational challenges, leading to weaknesses in some of its revenue segments.

What do options traders expect?

Using TipRanks’ Options Tool, we can estimate what options traders expect for Hewlett Packard stock immediately following the earnings report. The expected earnings move is calculated by evaluating the at-the-money straddle of options expiring shortly after the announcement.

Currently, the options tool indicates that options traders are predicting a price swing of 8.83% in either direction for HPE stock.

Is Hewlett Packard Enterprise a bargain?

HPE shares have risen about 15% this year, driven by rising demand for its cloud services and AI offerings. Still, mounting competition and operational challenges have made Wall Street cautious about HPE’s stock.

With two Buys and eight Hold recommendations, HPE has a Hold consensus rating. The average analyst price target on HPE shares of $20.78 implies an upside potential of 7.28% from current levels.

View more HPE analyst ratings

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