Financial Trading Blog
Stock of the day 07/09/2016 – Hewlett Packard Enterprise Co
Since the Hewlett-Packard Co split in November 2016, creating HP Inc and Hewlett Packard Enterprise Co, the latter has been almost unstoppable. A bit of a wobble at the start of 2016, where the stock opened at $14.93 only to remain trapped under $14 for most of January and February, was soon overcome as HPE jumped 13.5% following its Q1 earnings at the start of March.
(Source: IT-Finance.com 07/09/2016)
This propelled the stock under its second quarter figures at the end of May, which gave HPE the juice to rise above $20 by the middle of July. The stock’s momentum has admittedly begun to peter out of late, failing to move beyond $22 throughout August, though if its past two quarterly updates have been anything to go by that may well change following Wednesday’s statement. Hewlett Packard Enterprise sits at a current trading price of $21.87 (IT-Finance.com, 07/09/2016).
Unsurprisingly, given the market reaction, each of HPE’s 2016 earnings releases have been varying degrees of strong. The Q1 report in March saw the company just about beat expectations with earnings per share of 40 cents (1 cent higher than forecast), while matching revenue estimates of $12.7 billion. The Q2 update in May was a bit more detail-orientated; while earnings fell 1% year-on-year to 43 cents, revenue jumped 1%, and beat forecasts, to hit $12.71 billion. More importantly HPE announced the spin-off of its enterprise services unit, which is set to merge with Computer Sciences Corp, with investors holding shares in both.
The company has a lot to live up to, then, with its third quarter statement on Wednesday evening. Analysts are expecting HPE to produce earnings per share of 44 cents, alongside revenue of $12.64 billion; investors will also want an update on the news that the company intends to sell its software division for $8-10 billion to buyout firm Thoma Bravo.
Hewlett Packard Enterprise Co has a consensus rating of ‘Hold’ with an average target price of $19.97.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
