Did Hewlett Packard Enterprise Beat Estimates in Q4 2018?



Revenue of $7.9 billion

On December 4, Hewlett Packard Enterprise (HPE) announced its fiscal 2018 fourth-quarter results for its year that ended in October. It reported revenue of $7.9 billion, a rise of 3.7% YoY (year-over-year). Its sales rose 3% on a constant currency basis.

Its non-GAAP (generally accepted accounting principles) EPS were $0.45 in the fourth quarter, higher than its estimate of $0.39–$0.44. On total sales of $7.9 billion, HPE reported an operating profit of $800 million (or 10%). The company’s earnings rose by a robust 55% in the fourth quarter.

HPE has now managed to grow its revenue YoY for the last six consecutive quarters.

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What did analysts expect from HPE in the quarter?

Analysts had expected HPE to post revenue of $7.84 billion in the fourth quarter of fiscal 2018. Its non-GAAP EPS were expected to be $0.43. As we can see, HPE managed to beat analysts’ revenue and earnings estimates.

Despite HPE’s earnings and revenue growth coupled with its earnings beat, its stock fell 3% on December 4. The broader markets were negatively affected by the sell-off led by the tech sector.

Shares of peers Cisco Systems (CSCO), Juniper Networks (JNPR), and IBM (IBM) were down 2.8%, 2.6%, and 3%, respectively, on December 4.

HPE is currently trading at $15.05, 23% below its 52-week high of $19.48.


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