Hewlett Packard (HPE, $16.43) beats fiscal Q1 earnings expectations
Hewlett Packard Enterprise posted its first-quarter fiscal 2022 non-GAAP earnings of 53 cents per share, exceeding the Zacks Consensus Estimate by 15.2%. The figure is also higher than the company’s guidance of 42-50 cents. The year-ago quarter’s earnings were 52 cents per share.
Revenues rose +2% from the year-ago quarter to $7 billion, shy the consensus expectation of $7.02 billion. Annualized revenue run-rate (“ARR”) was up 23% year over year to $798 million.
The company’s revenue from its High Performance Compute & Artificial Intelligence segment rose+ 4% year over year to $790 million.
The Compute division’s sales increased 1% year on year to $3 billion, while revenues in the Intelligent Edge business climbed +11% to $901 million.
Financial Service revenues fell -2% year over year to $842 million. Revenues from the Storage business were down -3% year over year to $1.2 billion.
Corporate Investments & Other revenues rose +1% year over year.
Non-GAAP gross margin expanded 20 bps on a year-over-year basis to 33.9%, on the back of The strong pricing discipline, a positive mix shift toward high-margin software-rich businesses, cost takeouts and automation.
The company boosted its outlook for fiscal 2022 non-GAAP earnings to the range of $2.03-$2.17 per share, compared with prior forecast of $1.96-$2.10 per share.
It still expects free cash flow in the range of $1.8 billion to $2 billion.
HPE's RSI Indicator descends into oversold zone
The RSI Oscillator for HPE moved into overbought territory on May 01, 2024. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where HPE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for HPE moved above the 200-day moving average on April 08, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HPE advanced for three days, in of 335 cases, the price rose further within the following month. The odds of a continued upward trend are .
HPE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 12, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on HPE as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HPE turned negative on April 09, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
HPE moved below its 50-day moving average on April 30, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HPE crossed bearishly below the 50-day moving average on April 30, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HPE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.089) is normal, around the industry mean (9.833). P/E Ratio (12.372) is within average values for comparable stocks, (88.227). Projected Growth (PEG Ratio) (2.142) is also within normal values, averaging (1.728). Dividend Yield (0.028) settles around the average of (0.042) among similar stocks. P/S Ratio (0.841) is also within normal values, averaging (23.832).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HPE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a provider of information technology solutions
Industry TelecommunicationsEquipment