It is time to release earnings at Hewlett Packard Enterprise Company (HPE, Financial).
The American multinational company, which manufactures and sells computer hardware and software, IT services and consulting, will release its financial results for the second-quarter of 2018 on Tuesday, May 29, before the market opens.
For the second quarter, which ended April 30, analysts foresee that Hewlett Packard has closed the income statement with net earnings of 31 cents per share. That is a mean of 24 estimates that range from 28 cents to 34 cents. It is a decline of 4 cents from 2017.
The company is expected to have billed customers for $7.38 billion. That is a 0.80% decrease on a year-over-year basis. Estimates on revenues for the second quarter of 2018 range between a low of $7.06 billion and a high of $7.78 billion.
The stock in Hewlett Packard Enterprise Company is trading at $17.56 per share on the New York Stock Exchange. The company has a market capitalization of $27.274 billion. The stock has climbed 20% so far this year.
The 52-week range is $12.70 to $19.48. Hewlett Packard has a price-book ratio of 1.15 times versus and industry median of 1.94 times and a price-sales ratio of 1.01 times towards an industry average of 1.41 times.
The stock in Hewlett Packard is trading its 12-trailing month earnings at 18.68 times while the industry is at 23.78 times.
The chart below compares Hewlett Packard’s share price with the Peter Lynch Earnings Line (P/E = 15) and the Price at Med P/E without NRI (P/E = 10.53):
The recommendation rating is 2.6 out of 5. Seven analysts of a total of 25 recommended buying shares of Hewlett Packard and 16 analysts suggest holding the stock. For two analysts, the stock will underperform over the next 52-weeks of trading.
The average target price is $19.13 per share. The mean of 23 estimates ranging from $14 to $23 per is less than a 10% growth from the current share price.
Consensus is also for a 5.7% increase in earnings from full fiscal 2018 to full fiscal 2018. Over a five-year period, analysts predict an average annual 7.8% decline in the bottom line of Hewlett Packard.
The stock has a forward price earnings ratio of 12.45 times. When multiplied by a quarterly weighted average of $1.43 for full fiscals 2018 and 2019, it yields to a value of $17.80 per share of Hewlett Packard.
According to GuruFocus, Hewlett Packard has a profitability and growth rating of 6 out of 10.
Over the last 12 months, the company generated cash flow of $2.22 billion from its operations and free cash flow of approximately $500 million. The free cash flow is the amount left after the payment of debt, which was used by the company for business growth and to pay dividends.
Hewlett Packard has a forward dividend of 45 cents for a yield of 2.56%.
GuruFocus ranks Hewlett Packard with a financial strength rating of 5 out of 10. GuruFocus offers several ratios on the stock, as well as the opportunity to go back through the company’s figures on balance sheet, income and cash flow statements over the previous 30 years.
(Disclosure: I have no positions in Hewlett Packard Enterprise Company.)
