The company's third-quarter results included light revenue and a low-quality EPS beat. The company guided fourth-quarter EPS of $0.605, roughly in line with the consensus of $0.61.
In addition, HP Enterprise announced it intends to spin out most of the software business to a new entity combined with U.K.-based Micro Focus.
HP Enterprise trades at 2.5x on an EV/CY17E EBITDA basis when omitting the impact of the services and software spins (and ex-FS debt), below the group average of 6x. Jefferies' $27.00 target is based on 6x EV/CY17E EBITDA (ex-services and software).
"We continue to believe HPE shares offer a compelling valuation and will continue to rise as investors become more comfortable with HPE's revenue and free cash flow outlook," analyst James Kisner wrote in a note.
At time of writing, shares of HP Enterprise fell 2.72 percent to $21.49.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
