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 sees MACD Histogram crosses below signal line
HPE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on August 20, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 51 instances where the indicator turned negative. In of the 51 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for HPE moved out of overbought territory on August 17, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
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 .
HPE broke above its upper Bollinger Band on August 12, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Momentum Indicator moved above the 0 level on August 20, 2026. You may want to consider a long position or call options on HPE as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
HPE moved above its 50-day moving average on July 30, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where HPE advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 278 cases where HPE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (2.799) is normal, around the industry mean (6.505). P/E Ratio (49.953) is within average values for comparable stocks, (64.289). Projected Growth (PEG Ratio) (0.851) is also within normal values, averaging (1.157). Dividend Yield (0.010) settles around the average of (0.016) among similar stocks. P/S Ratio (1.850) is also within normal values, averaging (12.680).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
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General Information
a provider of information technology solutions
Industry TelecommunicationsEquipment
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