HPE stock rose 8.6% in 2017
Hewlett Packard Enterprise (HPE) rose 8.6% in 2017, compared with the S&P 500’s (SPY) return of 19%. In the past month, HPE has risen 3.4%. The HPE stock is now trading at $14.8, which is 15.7% higher than its 52-week low of $12.81 and 23% lower than its 52-week high of $19.16.
HPE beat EPS estimates in three of the past four quarters. HPE posted EPS (earnings per share) 10.7% above the analyst estimate in fiscal 4Q17 (ended October 2017). HPE’s EPS figure in fiscal 3Q17 was 15.4%—higher than the estimates—while the firm’s EPS in 1Q17 came in at 2.3%—also higher than the estimates.
In the above graph, you can see that while HPE’s revenues rose 4.6% in 4Q17 and 2.2% in 3Q17, it fell 12.8% in 2Q17 and 11.6% in 1Q17.
Revenue and price target estimates
Analysts expect HPE’s revenue to fall 38.1% YoY (year-over-year) in fiscal 1Q18 (ended January 2018), 5.8% YoY in fiscal 2Q18, and 16.3% YoY in fiscal 2018, driven by several spin-offs and mergers. The firm revenues are expected to rise 0.8% to $29.3 billion in fiscal 2019.
Of the 26 analysts covering HPE, seven recommend a “buy,” while two recommend a “sell,” and 17 recommend a “hold.” The analysts’ stock price target for HPE is $14.93, with a median target estimate of $15. HPE is trading at a discount of 1.4% to the median analyst estimate.