Shares of Hewlett Packard Enterprise (NYSE:HPE) surged in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.42, which beat analysts’ consensus estimate of $0.39 per share.
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Sales increased by 3.3% year-over-year, with revenue hitting $7.2 billion. This beat analysts’ expectations by $370 million.
Looking forward, management now expects revenue growth and adjusted earnings per share for FY 2024 to be in the ranges of 1% to 3% and $1.85 to $1.95, respectively. For reference, analysts were expecting 0.1% in revenue growth along with an adjusted EPS of $1.89.
Insider Activity
When looking at insider activity, there seems to be a lot of Selling. In fact, insiders have sold $1.9 million worth of shares in the past three months. As a result, confidence from within appears to be low, as the Insider Confidence Signal for HPE stock is Very Negative and is below the sector average, as shown in the picture below:
Is HPE Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on HPE stock based on one Buy, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 21% rally in its share price over the past year, the average HPE price target of $18.33 per share implies 3.5% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
