Hewlett Packard Stock Is Trading Higher Wednesday: What's Going On?

Hewlett Packard Enterprise Company HPE stock is trading higher Wednesday after the company announced better-than-expected second-quarter earnings on Tuesday after the market closed.

What To Know: The company reported adjusted earnings per share of 38 cents, beating the consensus estimate of 33 cents. In addition, Hewlett posted sales of $7.63 billion, beating the consensus estimate of $7.50 billion, and representing a 6% year-over-year climb.

The company provided a breakdown of its revenue, noting that Server revenue grew 6% year-over-year to $4.1 billion, Intelligent Edge sales rose 7% year-over-year to $1.2 billion, Hybrid Cloud revenue increased 13% to $1.5 billion and Financial Services revenue slipped 1.3% to $856 million.

Outlook: The company sees third-quarter adjusted earnings per share from 40 cents to 45 cents, versus the consensus estimate of 56 cents. Furthermore, Hewlett expects sales from $8.20 billion to $8.50 billion, versus the consensus estimate of $8.85 billion.

Hewlett now expects fiscal-year 2025 adjusted earnings per share from $1.78 to $1.90, versus the consensus estimate of $1.79. It previously anticipated adjusted earnings per share from $1.70 to $1.90.

Marie Myers, executive vice president and CFO of Hewlett, said, “We are maintaining our focus on achieving efficiencies and streamlining operations across our businesses to position HPE for the future and deliver financial results aligned with our fiscal 2025 outlook.”

Analyst Changes: Following the earnings report, multiple analysts raised their price targets.

• Barclays analyst Tim Long maintained an Overweight rating on Hewlett and raised the price target from $20 to $24.
• Wells Fargo analyst Aaron Rakers maintained an Equal-Weight rating on Hewlett Packard and raised the price target from $17 to $20.
• UBS analyst David Vogt maintained a Neutral rating on Hewlett and raised the price target from $16 to $18.

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HPE Price Action: At the time of writing, Hewlett stock is trading 0.73% higher at $17.82, per data from Benzinga Pro.

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