Technology company Hewlett Packard Enterprise (HPE) is set to report its Q4 earnings results on December 4 after the market closes. Analysts are expecting earnings per share to come in at $0.58 on revenue of $9.9 billion. This compares to last year’s figures of $0.58 and $8.48 billion, respectively.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Although it is nice to see revenue grow in the double digits, it is not ideal when earnings remain flat. Nevertheless, the firm’s income tends to be cyclical, as demonstrated by the image below, and it’s worth noting that HPE has beaten earnings estimates 11 times during the past 12 quarters. Therefore, it is possible that EPS can come in above last year’s figure.
Investors will also be closely watching for any commentary from HPE’s management regarding the potential impact of tariffs and trade policies on the company’s supply chain and profitability.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting an 8.4% move in either direction.
Is HPE Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HPE stock based on six Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HPE price target of $26.29 per share implies 19.9% upside potential.
