Hewlett Packard Enterprise (HPE) reported $8.46 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 15.1%. EPS of $0.58 for the same period compares to $0.52 a year ago.
The reported revenue represents a surprise of +2.81% over the Zacks Consensus Estimate of $8.23 billion. With the consensus EPS estimate being $0.55, the EPS surprise was +5.45%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hewlett Packard Enterprise performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Financial Services: $893 million versus $891.60 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change.
- Revenue- Corporate Investments and other: $262 million compared to the $268.35 million average estimate based on three analysts. The reported number represents a change of -23.6% year over year.
- Revenue - Hybrid Cloud: $1.58 billion versus the three-analyst average estimate of $1.40 billion.
- Revenue- Intelligent Edge: $1.12 billion compared to the $1.20 billion average estimate based on three analysts. The reported number represents a change of -17.2% year over year.
- Revenue - Server: $4.71 billion versus $4.61 billion estimated by three analysts on average.
- Elimination of intersegment net revenue and other: -$109 million versus the three-analyst average estimate of -$134.47 million. The reported number represents a year-over-year change of -3.5%.
- Earnings from Operations- Financial Services: $82 million versus the two-analyst average estimate of $86.64 million.
- Earnings from Operations- Corporate Investments and other: -$2 million compared to the -$8.60 million average estimate based on two analysts.
- Earnings from Operations- Hybrid Cloud: $122 million compared to the $71.53 million average estimate based on two analysts.
- Earnings from Operations- Server: $545 million versus the two-analyst average estimate of $499.97 million.
- Earnings from Operations- Intelligent Edge: $274 million versus $283.21 million estimated by two analysts on average.
Shares of Hewlett Packard Enterprise have returned +2% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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