Hewlett Packard ( HPE ) is gearing up to announce its quarterly earnings on Tuesday, 2025-06-03. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Hewlett Packard ( HPE ) will report an earnings per share (EPS) of $0.50.

The announcement from Hewlett Packard ( HPE ) is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

In the previous earnings release, the company missed EPS by $0.00, leading to a 11.97% drop in the share price the following trading session.

Here's a look at Hewlett Packard's ( HPE ) past performance and the resulting price change:

Market Performance of Hewlett Packard's Stock

Shares of Hewlett Packard ( HPE ) were trading at $17.28 as of May 30. Over the last 52-week period, shares are down 2.02%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analysts' Take on Hewlett Packard

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Hewlett Packard ( HPE ).

Hewlett Packard ( HPE ) has received a total of 8 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $19.5, the consensus suggests a potential 12.85% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Super Micro Computer, NetApp and Western Digital, three major players in the industry, shedding light on their relative performance expectations and market positioning.

Analysts currently favor an Neutral trajectory for Super Micro Computer, with an average 1-year price target of $40.93, suggesting a potential 136.86% upside.

Analysts currently favor an Neutral trajectory for NetApp, with an average 1-year price target of $109.08, suggesting a potential 531.25% upside.

Analysts currently favor an Outperform trajectory for Western Digital, with an average 1-year price target of $54.94, suggesting a potential 217.94% upside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Super Micro Computer, NetApp and Western Digital are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Hewlett Packard ( HPE ) ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. The return on equity is also higher than the average of its peers. Overall, Hewlett Packard ( HPE ) is positioned well compared to its peers in terms of financial performance.

Delving into Hewlett Packard's Background

Hewlett Packard Enterprise ( HPE ) is an information technology vendor that provides hardware and software to enterprises. Its primary product lines are compute servers, storage arrays, and networking equipment; it also has a high-performance computing business. HPE's stated goal is to be a complete edge-to-cloud company. Its portfolio enables hybrid clouds and hyperconverged infrastructure. It uses a primarily outsourced manufacturing model and employs 60,000 people worldwide.

Understanding the Numbers: Hewlett Packard's Finances

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Hewlett Packard ( HPE ) showcased positive performance, achieving a revenue growth rate of 16.27% as of 31 January, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Hewlett Packard's ( HPE ) net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 7.61%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Hewlett Packard's ( HPE ) ROE stands out, surpassing industry averages. With an impressive ROE of 2.39%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.84%, the company showcases effective utilization of assets.

Debt Management: Hewlett Packard's ( HPE ) debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.71.

To track all earnings releases for Hewlett Packard ( HPE ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.