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What HPE Expects in Q1 2019 and 2019

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Dec. 6 2018, Updated 7:31 a.m. ET

Non-GAAP EPS estimated between $0.33 and $0.37

During Hewlett Packard Enterprise’s (HPE) quarterly earnings call, the company estimated its non-GAAP (generally accepted accounting principles) EPS to be between $0.33 and $0.37 in the first quarter of fiscal 2019. For fiscal 2019, the company expects earnings of between $1.51 and $1.61.

Analysts expect HPE’s revenue to be flat at $7.68 billion in the first quarter of fiscal 2019. Its EPS are expected to rise $0.34–$0.35 in the same period. Wall Street also expects HPE’s revenue to rise 0.7% to $30.94 billion in fiscal 2019. Comparatively, its earnings are expected to rise less than 4% year-over-year to $1.59.

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HPE has beaten earnings estimates for five consecutive quarters

As we know, HPE beat its earnings estimates in the fourth quarter of fiscal 2018 by 4.6%. In the third quarter, it reported EPS of $0.44, 19% higher than the consensus estimate of $0.37. The company beat the earnings estimate of $0.31 by 9.7% in the second quarter with reported EPS of $0.34.

HPE beat analysts’ earnings estimate of $0.22 by 54.5% in the first quarter of fiscal 2018, reporting EPS of $0.34. It reported EPS of $0.31 in the fourth quarter of fiscal 2017, 10.7% higher than analysts’ average estimate of $0.28.

HPE has outlined a few strategic priorities for the short term. It aims to accelerate growth in the Intelligent Edge business segment and to deliver profitable growth in the Hybrid IT segment.

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