Shares of Hewlett Packard Enterprise (HPE) gained in after-hours trading after the tech company reported earnings for its second quarter of Fiscal Year 2025. Earnings per share came in at $0.38, which beat analysts’ consensus estimate of $0.33 per share. Sales increased by 6% year-over-year, with revenue hitting $7.6 billion. This also beat analysts’ expectations of $7.45 billion.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
These results were driven by a strong performance across all of its main product segments, despite a challenging global economic environment. Indeed, revenue rose across the Server, Intelligent Edge, and Hybrid Cloud segments, while the Server segment also saw margins improve as the quarter progressed. This is especially important because Servers make up the largest portion of the firm’s revenue, as indicated by the image below.
Outlook for 2025
Looking forward, management now expects revenue growth and adjusted earnings per share for FY 2025 to be in the ranges of 7% to 9% and $1.78 to $1.90, respectively. For reference, analysts were expecting 8% in revenue growth along with an adjusted EPS of $1.80.
Is HPE Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HPE stock based on four Buys, five Holds, and zero Sells assigned in the past three months. Furthermore, the average HPE price target of $19 per share implies 7.5% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
