HPE Earnings Prediction
The chart below shows how HPE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HPE sees a +1.16% change in stock price 10 days leading up to the earnings, and a +4.13% change 10 days following the report. On the earnings day itself, the stock moves by -0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
HPE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
8.46B
15.06%
9.70%
Gross Margin
30.00%
-11.32%
-2.79%
Operating Margin
9.27%
18.09%
11.55%
Net Margin
16.15%
84.99%
143.22%
EPS
0.99
102.04%
160.53%
No Data Available
HPE Earnings Analysis
Hewlett Packard Enterprise Company Corporation (HPE.N) Earnings Conference Call
Positive
Record Quarterly Revenue Growth: Hewlett Packard Enterprise reported a record quarterly revenue of $8.5 billion, up 15% year-over-year, exceeding $8 billion for the first time in history.
AI Revenue Surge: AI systems revenue grew more than 150% to $4.1 billion, meeting the server non-GAAP operating margin target.
Record Free Cash Flow: The company generated a record-breaking $2.3 billion in free cash flow, exceeding guidance of at least $1.9 billion for the year.
Revenue Exceeds Expectations: Total revenue grew 3% year-over-year to $30.1 billion, exceeding the high end of the outlook range provided in September.
Customer Acquisition Success: Hewlett Packard Enterprise added more than 9,000 new customers across the portfolio, contributing to strong revenue growth.
Negative
Operating Margin Decline: Operating margin decreased by 270 basis points year-over-year, indicating a decline in profitability.
Intelligent Edge Revenue Decline: Total Intelligent Edge revenue was $1.1 billion, down 20% year-over-year, reflecting a significant drop in this segment.
Earnings Per Share Shortfall: Non-GAAP diluted net EPS was $0.58, which was below guidance, indicating weaker performance than expected.
Revenue Growth Decline: The company experienced a sequential decline in revenue growth, suggesting potential challenges in maintaining momentum going forward.
Inventory Levels Analysis: Inventory ended the year at $7.8 billion, up 2% quarter-over-quarter, indicating potential overstock issues.
HPE FAQs
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HPE Earning Call Sentiment
Hewlett Packard Enterprise Company (HPE) Q4 2024 Earnings Call Transcript
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HPE.N
0.93%Positive
The earnings report highlights strong financial performance with a 15% YoY revenue growth and record AI server revenue, despite some gross margin decline. The optimistic guidance and shareholder returns are positive indicators. However, regulatory risks and competitive pressures are concerns. The Q&A section reveals management's confidence in AI growth and clarifies the $700M de-booking was not a competitive loss. Considering these factors, the stock is likely to see a positive movement, particularly with the promising AI pipeline and shareholder returns, despite some uncertainties.