Hewlett Packard Set for Strong Q1 2025 with Growing EPS

Hewlett Packard Enterprise (HPE) is expected to announce impressive Q1 earnings, with an EPS forecasted at $0.43, up 48.3% YoY. Analysts show a cautiously optimistic stance with strong revenue growth in data center solutions boosting investor confidence.

Date: 29-01-2025

AI Rating: 7

Overview
Hewlett Packard Enterprise (HPE) is set to report its fiscal Q1 2025 earnings on March 6, and analysts project a profit of $0.43 per share, an impressive 48.3% increase from the previous year's $0.29. This anticipated growth in earnings per share (EPS) reflects positively on the company's overall performance and market confidence.

Earnings Per Share (EPS)
The expected EPS growth is notable, showing the company’s ability to exceed earnings expectations in the past quarters. In fiscal 2025, the EPS is estimated to reach $1.85, which marks a 6.9% growth compared to $1.73 in fiscal 2024, and is also projected to grow to $2.03 in fiscal 2026, indicating steady growth in profitability.

Revenue Growth
HPE's recent Q4 results indicated a revenue of $8.5 billion, demonstrating strong demand in data center solutions, especially a year-over-year increase of 32% in server sales. Despite challenges such as a 20% decline in intelligent edge revenue, the robust performance from data centers signifies potential for continuous revenue growth.

Market Performance
HPE's stock has shown a significant upward trajectory, appreciating 36.3% over the past 52 weeks, which is substantially higher than the broader S&P 500 Index's 23.7% gain. The market's response to HPE’s fiscal Q4 performance, which included a 10.6% surge in stock price post-earnings, reflects investor positivity regarding the company's growth prospects.

Analyst Ratings
The consensus among analysts is cautiously optimistic, with a 'Moderate Buy' rating. Out of 15 analysts, seven recommend a 'Strong Buy', indicating confidence in HPE's ability to sustain profitability and growth moving forward.

Stocks: HPE