Hewlett Packard Enterprise Raises Annual Profit Forecast Amid AI Boom

Hewlett Packard Enterprise raises annual profit forecast on AI strength

(Reuters) - Hewlett Packard Enterprise raised its annual profit forecast on Wednesday, as demand for artificial intelligence servers continues to pick up owing to higher investments in AI infrastructure by businesses. However, shares of HPE fell nearly 3% in extended trading. Michael Ashley Schulman, chief investment officer at Running Point Capital, attributed the share fall to a drop in quarterly revenue in the company's data analysis and traditional cloud segments. The company leaving its full-year revenue forecast unchanged has also weighed on shares, he added, as expectations for AI-linked companies remain high. HPE's AI server business, however, continues to outperform as computers powered by Nvidia are capable of processing and executing complex commands quickly and efficiently, making them attractive to tech firms investing in generative AI and machine learning. HPE reported third-quarter server revenue of $4.3 billion, a rise of 35% from the prior year. The company, however, does face tough competition from server makers like Dell Technologies, which raised its annual profit and revenue forecasts last month on the back of server demand. HPE raised its forecast for annual adjusted earnings per share to a range of $1.92 and $1.97, from $1.85 and $1.95. For the fourth quarter, the company forecast revenue to be between $8.1 billion and $8.4 billion, while analysts were expecting $8.18 billion. The company said it expects fourth-quarter adjusted EPS of between 52 cents to 57 cents per share, compared with estimates of 55 cents, according to LSEG data. Revenue for the quarter ended July 31 came in at $7.71 billion, beating estimates of $7.67 billion. On an adjusted basis, the company earned 50 cents per share, compared with estimates of 47 cents. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)

HP Enterprise Posts Higher-Than-Expected Revenue Driven by AI Demand

The company raised and narrowed its outlook for full-year earnings. Hewlett Packard Enterprise (HPE) posted fiscal third-quarter sales that beat analysts' expectations, buoyed by a surge in server revenue driven by demand for artificial intelligence (AI). The server and storage maker reported third-quarter revenue jumped 10% year-over-year to $7.7 billion, above analysts' expectations. Server revenue was up 35% from the year-ago quarter to $4.3 billion. Revenue from HP Enterprise's Intelligent Edge and cloud segments fell year-over-year, while revenue in its financial services segment rose 1%. Diluted earnings per share (EPS) of 38 cents missed analysts' estimates compiled by Visible Alpha, though adjusted EPS of 50 cents came ahead of projections. "These results reflect our momentum in delivering on our edge-to-cloud strategy across networking, hybrid cloud, and AI," HP Enterprise CEO Antonio Neri said in a release. The company raised its full-year EPS outlook to between $1.68 and $1.73, up from $1.61 to $1.71 previously, and maintained its revenue growth estimate of 1% to 3%. HP Enterprise shares were down about 1.9% at $18.42 in extended trading Wednesday following the company's earnings release.

Hewlett Packard Enterprise raises annual profit forecast on AI strength

Hewlett Packard Enterprise raised its annual profit forecast on Wednesday, as demand for artificial intelligence servers continues to pick up owing to higher investments in AI infrastructure by businesses. However, shares of HPE fell nearly 3% in extended trading. Michael Ashley Schulman, chief investment officer at Running Point Capital, attributed the share fall to a drop in quarterly revenue in the company's data analysis and traditional cloud segments. The company leaving its full-year revenue forecast unchanged has also weighed on shares, he added, as expectations for AI-linked companies remain high. HPE's AI server business, however, continues to outperform as computers powered by Nvidia are capable of processing and executing complex commands quickly and efficiently, making them attractive to tech firms investing in generative AI and machine learning. HPE reported third-quarter server revenue of $4.3 billion, a rise of 35% from the prior year. The company, however, does face tough competition from server makers like Dell Technologies, which raised its annual profit and revenue forecasts last month on the back of server demand. HPE raised its forecast for annual adjusted earnings per share to a range of $1.92 and $1.97, from $1.85 and $1.95. For the fourth quarter, the company forecast revenue to be between $8.1 billion and $8.4 billion, while analysts were expecting $8.18 billion. The company said it expects fourth-quarter adjusted EPS of between 52 cents to 57 cents per share, compared with estimates of 55 cents, according to LSEG data. Revenue for the quarter ended July 31 came in at $7.71 billion, beating estimates of $7.67 billion. On an adjusted basis, the company earned 50 cents per share, compared with estimates of 47 cents. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)

Hewlett Packard Enterprise raises annual profit forecast on AI strength

The company leaving its full-year revenue forecast unchanged has also weighed on shares, he added, as expectations for AI-linked companies remain high. HPE's AI server business, however, continues to outperform as computers powered by Nvidia are capable of processing and executing complex commands quickly and efficiently, making them attractive to tech firms investing in generative AI and machine learning. HPE reported third-quarter server revenue of $4.3 billion, a rise of 35% from the prior year. The company, however, does face tough competition from server makers like Dell Technologies, which raised its annual profit and revenue forecasts last month on the back of server demand. HPE raised its forecast for annual adjusted earnings per share to a range of $1.92 and $1.97, from $1.85 and $1.95. For the fourth quarter, the company forecast revenue to be between $8.1 billion and $8.4 billion, while analysts were expecting $8.18 billion. The company said it expects fourth-quarter adjusted EPS of between 52 cents to 57 cents per share, compared with estimates of 55 cents, according to LSEG data. Revenue for the quarter ended July 31 came in at $7.71 billion, beating estimates of $7.67 billion. On an adjusted basis, the company earned 50 cents per share, compared with estimates of 47 cents. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)

HP Enterprise slips even as it up full-year guidance on back of AI demand (HPE)

HP Enterprise (HPE) shares fell 2.6% in late trading on Wednesday after the IT giant reported fiscal third-quarter results and guidance that came in above expectations. The Antonio Neri-led company now expects adjusted earnings for the fiscal year to be between $1.92 and $1.97 per share, up from a prior view of $1.85 to $1.95 per share. Analysts expect adjusted earnings of $1.92 per share. For the period ending July 31, HP Enterprise earned an adjusted $0.50 per share as revenue rose 10.1% year-over-year to $7.71B. Revenue from its all important server segment, which has seen a boost thanks to artificial intelligence spending, rose 35% year-over-year to $4.3B. Operating margin for the segment came in at 10.8%, up from 10.1% in the year ago period. Intelligent Edge revenue fell 23% year-over-year to $1.1B, while hybrid cloud revenue dipped 7% to $1.3B. Financial Services revenue was $879M, up 1% from the prior-year period. A consensus of analysts expected the company to earn $0.47 on $7.67B in revenue. Looking to the fiscal fourth-quarter, HP Enterprise expects to earn between $0.52 and $0.57 per share, with revenue between $8.1B and $8.4B. The midpoint of $8.25B is above the $8.15B analysts were expecting, who also anticipated adjusted earnings of $0.54 per share. The company will host a conference call at 5:30 p.m. EST to discuss the results.

What You Need To Know Ahead of HP Enterprise's Earnings

Analysts have suggested that the company is a "forgotten" beneficiary of the artificial intelligence boom amid focus on Nvidia and other tech giants. Hewlett Packard Enterprise (HPE) reports fiscal third-quarter earnings after the closing bell Wednesday, with analysts expecting the server and storage maker to post year-over-year increases in revenue and profit as demand for its products to power artificial intelligence (AI) products boosts sales. HP Enterprise is projected to report revenue up 9% from a year ago to $7.63 billion, with profit projected to see an 18% bump to $547.3 million. Analysts have suggested that HP Enterprise is a beneficiary of the AI boom that markets may have "forgotten" about. The company's second-quarter earnings sent the stock nearly 24% higher in a stretch of just over a week following the report.

Hewlett Packard Enterprise falls in afterhours despite lifting annual guidance By Investing.com

Investing.com -- Hewlett Packard Enterprise on Wednesday lifted its full-year earnings guidance on AI-led demand optimism following fiscal third-quarter results that beat Wall Street estimates on both the top and bottom lines. Hewlett Packard Enterprise Co (NYSE:HPE) fell 3% in after hours following the report. HP (NYSE:HPQ) reported Q3 EPS of $0.50 on revenue of $7.71 billion, compared with estimates of $0.47 and $7.66B, respectively. "These results reflect our momentum in delivering on our edge-to-cloud strategy across networking, hybrid cloud, and AI," the company said. For fiscal Q4, adjusted EPS was guided in a range of $0.76 to $0.81, beating EPS estimates of $0.55. Revenue was guided between $8.1B and $8.4B, compared with estimates of $8.15B. For the full-year, adjusted EPS was guided in a range of $1.92 to $1.97, up from a prior estimate of $1.82 to $1.95, with revenue growth expected in a range of 1% to 3%.

Hewlett Packard Reports Better-Than-Expected Q3 Results: Details - Hewlett Packard (NYSE:HPE)

Quarterly revenue clocks in at $7.71 billion which beat the analyst consensus estimate of $7.66 billion. Hewlett Packard Enterprise Co HPE reported its third-quarter financial results after Wednesday's closing bell. Here's a look at the details from the report. The Details: Hewlett Packard reported quarterly earnings of 50 cents per share, which beat the analyst consensus estimate by 6.38%. Quarterly sales came in at $7.71 billion, which beat the analyst consensus estimate of $7.66 billion and is a 10.11% increase over the same period last year. Server revenue was $4.3 billion, up 35% from the prior-year period in actual dollars and in constant currency, with 10.8% operating profit margin, compared to 10.1% from the prior-year period. Intelligent Edge revenue was $1.1 billion, down 23% from the prior-year period in actual dollars and in constant currency, with 22.4% operating profit margin, compared to 27.6% in the prior-year period. Hybrid Cloud revenue was $1.3 billion, down 7% from the prior-year period in actual dollars and in constant currency, with 5.1% operating profit margin, compared to 5.4% from the prior-year period. Financial Services revenue was $879 million, up 1% from the prior-year period in actual dollars and in constant currency, with 9% operating profit margin, compared to 8.2% from the prior-year period. Net portfolio assets of $13.2 billion, down 2.7% from the prior-year period in actual dollars and down 0.6% in constant currency. The business delivered return on equity of 17.4%, up 1.7 points from the prior-year period. Read Next: What's Going On With Intel Stock? "We delivered a strong third quarter, with impressive revenue growth, especially from our AI system conversion, and we improved profitability," said Antonio Neri, president and CEO of Hewlett Packard Enterprise. "These results reflect our momentum in delivering on our edge-to-cloud strategy across networking, hybrid cloud, and AI. We have driven meaningful innovation throughout our portfolio, which increases our relevancy with customers and positions us to continue to deliver profitable growth for shareholders. The HPE board of directors declared a regular cash dividend of 13 cents per share on the company's common stock, payable on Oct.18, 2024, to stockholders of record as of the close of business on Sept. 19, 2024. Outlook: Hewlett Packard sees fourth-quarter earnings of between 52 cents and 57 cents per share, versus the 55-cent estimate, and revenue in a range of $8.1 billion to $8.4 billion, versus the $8.17 billion estimate. The company expects fiscal year earnings of between $1.92 and $1.97 per share, versus the $1.92 estimate, and revenue growth of between 1% and 3%. HPE Price Action: According to Benzinga Pro, Hewlett Packard shares are down 3.73% after-hours at $18.07 at the time of publication Wednesday. Read Also: Nvidia Receives DOJ Subpoena In Antitrust Investigation: What To Know Image: Shutterstock Market News and Data brought to you by Benzinga APIs

4 Reasons Why Hewlett Packard Investors Should Be Positive Into Q3 Earnings: Analyst - Hewlett Packard (NYSE:HPE)

The bank's earnings estimates for Hewlett Packard Enterprise are ahead of the Street consensus. Hewlett Packard Enterprise Co. HPE should perform well as it approaches Wednesday's third-quarter earnings report for four reasons, according to an analyst: demand for artificial intelligence, recovery in infrastructure, networking equipment demand and shares trading cheaply. "The combination of the above leads us to believe that the set up for HPE shares is positive into the print with a greater likelihood of upward revision to estimates from the upcoming print," JPMorgan analyst Samik Chatterjee wrote in a Tuesday note. JPMorgan has no rating on Hewlett Packard Enterprise. AI demand "continues to be robust," traditional IT hardware is recovering with peers reporting sharp rise in demand for traditional servers, networking equipment demand is on the upswing and HPE's stock is trading at an "inexpensive" multiple of 10 times earnings, the analyst said. JPMorgan forecasts third-quarter revenue of $7.75 billion compared to Wall Street consensus estimate of $7.661 billion, according to Benzinga Pro. JPMorgan expects earnings per share of 48 cents, one penny more than the consensus estimate. Read Also: Decoding Hewlett Packard's Options Activity: What's the Big Picture? "We expect the strength to be led by upsides in AI server revenues as well as sequential growth in both Hybrid Cloud and Intelligent Edge helped by recoveries in traditional infrastructure demand following a period of digestion," Chatterjee said. JPMorgan also raised forecasts for fourth-quarter revenue to $8.21 billion versus a consensus of $8.14 billion and fourth-quarter EPS of 56 cents compared to a consensus of 54 cents. This figure will be "largely led by better demand recovery -- which includes both shipments and pricing -- in General Purpose Servers," the analyst said. JPMorgan predicts full-year 2024 EPS of $1.95 for HPE, putting it at the high end of earlier guidance that ranged between $1.85 and $1.95. HPE Price Action: Hewlett Packard Enterprise was down 1.6% at $19.07 as of Tuesday's early afternoon trading. Exchange-traded funds that hold the stock saw both gains and losses. First Trust S&P 500 Diversified Dividend Aristocrats ETF KNGZ slipped 0.79%. First Trust S&P 500 Diversified Free Cash Flow ETF FCFY gained 1.06%. IShares Focused Value Factor ETF DIVL fell 1.2%. IShares Focused Value Factor ETF FOVL picked up 0.79%. Fidelity Cloud Computing ETF FCLD dropped 1.87%. Read Next: Hewlett Packard Continues $4B Claim Against Estate Of UK's Bill Gates, Mike Lynch, Following Tech Magnate's Death In Yacht Tragedy Photo via Shutterstock. Market News and Data brought to you by Benzinga APIs

Hewlett Packard Q3 2024 Earnings Preview

Hewlett Packard (NYSE:HPE) is scheduled to announce Q3 earnings results on Wednesday, September 4th, after market close. The consensus EPS Estimate is $0.47 (-4.1% Y/Y) and the consensus Revenue Estimate is $7.66B (+9.4% Y/Y). Over the last 2 years, HPE has beaten EPS estimates 100% of the time and has beaten revenue estimates 50% of the time. Over the last 3 months, EPS estimates have seen 7 upward revisions and 5 downward. Revenue estimates have seen 11 upward revisions and 1 downward. Recent earnings Analysis from our contributors:With Earnings Looming, Hewlett Packard Enterprise Still Firing On All Cylinders More on Hewlett Packard With Earnings Looming, Hewlett Packard Enterprise Still Firing On All Cylinders Hewlett Packard Enterprise: Buy Into The Earnings On Strong Server Growth (Earnings Preview) Hewlett Packard Enterprise: AI Growth From Cloud Core And Edge; Initiate With 'Buy' HP to continue $4B lawsuit against Mike Lynch after yacht death Earnings week ahead: Zscaler, DocuSign, NIO, Broadcom and more