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Monday, May 29, 2017

Hewlett Packard Enterprise Earnings Face 'Significant Headwinds'

Hewlett Packard Enterprise (NYSE: #HPE ) reports earnings for the quarter ending April 2017 on Wednesday, May 31, after market close. The analysts expect CEO Meg Whitman to report a dismal quarter, with a YoY decrease in non-GAAP earnings per share (-17%) and a YoY decrease in revenues (-24%). However, the HPE management outlook is much more positive with an EPS YoY average estimate of +2.4%. Management does not provide a revenue projection. The estimated non-GAAP EPS of $0.35 by analysts is a discouraging drop of -17% YoY and lower than the four-quarter earnings per share average through QE January 2017 of $0.49. The HPE management outlook is much more optimistic than the 23 analysts. Hewlett Packard Enterprise management needs to be correct this upcoming quarter to salvage financial performance. Since the restructuring and separation from HP (NYSE:HPQ), beginning with the QE January 2016, non-GAAP earnings per share have been $0.45, $0.61, $0.49, $0.42, $0.41 for the past five quarters, in reverse chronological order. Estimated QE April 2017 earnings per share (non-GAAP): Analyst estimates: $0.35 avg., $0.33 low, $0.38 high, 23 analysts Prior year $0.42 = -17% YoY Prior quarter $0.45 = -22% QoQ HPE management outlook $0.41 to $0.45 = -2% to +7% YoY Non-GAAP and GAAP net earnings and earnings per share have not tracked together for the past five quarters. Non-GAAP earnings per share have averaged $0.48 for the past five quarters, GAAP EPS has averaged $0.40.

https://seekingalpha.com/article/4077085-hewlett-packard-enterprise-earnings-face-significant-headwinds

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