Hewlett Packard Enterprise (HPE): What’s Up for Q1 Earnings?
Since its split from #HP Inc. #HPQ in Nov 2015, #HewlettPackardEnterprise has made it clear that it will focus on restructuring and realigning its businesses to drive long-term sustainable growth and improve margins.
Hewlett Packard Enterprise has done reasonably well in enterprise class server, storage market, networking and related services, and is focused on these fast-growing and higher-margin businesses.
Hewlett Packard Enterprise’s Chief Operating Officer (CEO), Meg Whitman, is looking to reduce the company’s large portfolio of non-core businesses that have struggled to maintain their growth trajectory. The primary motive behind its massive restructuring drive is to reassure investors of the company’s sustained focus on improving profitability and returning value to shareholders in the form of dividend and share repurchases. We believe that the successful deployment of the company’s restructuring initiatives and products will have a positive impact on top-line performance in the first quarter. However, macroeconomic challenges and tepid IT spending remain near-term concerns. Competition from International Business Machines and Oracle add to its woes. Earnings Whispers Our proven model does not conclusively show that Hewlett Packard Enterprise is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below. Zacks ESP: Earnings ESP for Hewlett Packard Enterprise is 0.00% since the Most Accurate estimate of 44 cents stands in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.