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How Hewlett Packard Enterprise Has Done since Q1 2018

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May. 16 2018, Published 2:20 p.m. ET

Stock has risen ~6% since fiscal Q1 2018 results

Hewlett Packard Enterprise (HPE) announced its first-fiscal-quarter results on February 22. From that date, its stock rose 6% to close at $17.40 on May 15. HPE stock rose over 10% the day after it announced its first-quarter results. In comparison, the S&P 500 (SPY) and PowerShares QQQ RTF (QQQ) have risen 0.2% and 1.9%, respectively, since February 22.

In the previous part, we saw that HPE beat earnings estimates by 54% in the first quarter, driven by improved macro conditions resulting in increased IT spending, favorable foreign exchange, and a robust order backlog. In the first quarter, HPE’s revenue rose 11% YoY (year-over-year) to $7.7 billion, while its EPS rose 21.4% YoY to $0.34.

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Is HPE on the way to stabilization?

HPE split from HP (HPQ) in late 2015 and has spun off several business segments over the last two years. It has also acquired companies such as SimpliVity and Nimble Storage to expand its product portfolio and drive revenue.

Last year, HPE launched HPE GreenLake, a solution offering enterprises the flexibility to choose between workloads. HPE’s OneSphere platform deploys on-premises private clouds to clients. A few months back, HPE launched a DLT (distributed ledger technology) blockchain solution and partnered with peers IBM (IBM), Oracle (ORCL), and Microsoft (MSFT) to run their blockchain operations on this platform.

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