Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $8.5 billion, up 15% year-over-year, exceeding $8 billion for the first time in history [12][38] - Fiscal year 2024 revenue growth topped 3% year-over-year, exceeding $30 billion, with a record-breaking free cash flow of $2.3 billion [19][33] - Non-GAAP diluted net EPS was $0.58, above guidance, with a non-GAAP operating margin of more than 11%, a 110 basis points increase sequentially [18][41] Business Line Data and Key Metrics Changes - Server revenue reached an all-time high of $4.7 billion, up 31% year-over-year, marking the third consecutive quarter of double-digit growth [13][43] - AI systems revenue grew 150% year-over-year to $4.1 billion, with a backlog of over $3.5 billion [35][46] - Hybrid cloud revenue increased 18% year-over-year and 21% sequentially to $1.6 billion, driven by HPE Private Cloud and HPE Storage [15][47] - Intelligent Edge revenue was $1.1 billion, down 20% year-over-year, but showed signs of recovery with strong order growth [50][52] Market Data and Key Metrics Changes - The company added more than 9,000 new customers across its portfolio in fiscal year 2024, ending with approximately 39,000 unique customers [19][39] - HPE Financial Services financing volumes rose to an all-time high of $2.1 billion, up 41% year-over-year [17][53] Company Strategy and Development Direction - The company is focused on providing a complete portfolio of modern, secure networking solutions, particularly in AI and hybrid cloud [10][20] - Continued investment in innovation is aimed at enhancing product offerings and capturing additional market share [21][24] - The pending acquisition of Juniper Networks is expected to strengthen HPE's position in the market and enhance its portfolio [31][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming fiscal year, anticipating increased IT spending and continued recovery in traditional compute and AI systems [58][62] - The company expects to close the Juniper transaction in early 2025, which will provide combined company guidance for fiscal 2025 [57][62] - Management highlighted the importance of disciplined cost management and strategic investments to drive profitability [41][100] Other Important Information - The company achieved a non-GAAP operating profit of $938 million in Q4, translating to a non-GAAP operating margin of 11.1% [18][41] - The cash conversion cycle was a negative 12 days, indicating efficient cash flow management [55] Q&A Session Summary Question: Can you provide insight into the AI pipeline given the backlog levels dipped? - Management indicated that the AI pipeline is a multiple of the current backlog, with significant growth in enterprise AI and ongoing orders from model builders and hyperscalers [66][68][70] Question: Can you discuss the dynamics affecting gross margins, particularly server margins? - Management noted that the server segment achieved an operating margin of 11.6%, driven by strong performance in AI server revenue and effective cost controls [75][78][81] Question: What drove the significant sequential increase in Hybrid Cloud revenue? - Management attributed the growth to strong performance in Private Cloud and the adoption of HPE Alletra MP Storage, with no unusual large deals impacting the results [121][125][130] Question: How is the company managing gross margin degradation? - Management explained that the decline in gross margin was primarily due to a lower contribution from Intelligent Edge revenue, but gross profit dollars increased year-over-year [94][96][98] Question: What is the outlook for traditional servers in the upcoming quarter? - Management confirmed expectations for traditional servers to be flattish to slightly up sequentially, driven by ongoing momentum and the transition to Gen11 products [104][105][107]

Thursday, December 5, 2024 All good things come to an end. So it is with this latest run of all-time highs hit during the last week or so of trading: all major indexes closed out today's session in the red. The Dow slid -248 points, -0.55%, while the S&P 500 — fresh off its 56th record closing high this year so far — slipped -11 points, -0.19%. The Nasdaq dropped -34 points on the day, -0.18%, while the small-cap Russell 2000 shed -25 points, -1.06%. It looks to be a bit of a wait-and-see thing with tomorro ...

Hewlett Packard Enterprise (HPE) reported $8.46 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 15.1%. EPS of $0.58 for the same period compares to $0.52 a year ago.The reported revenue represents a surprise of +2.81% over the Zacks Consensus Estimate of $8.23 billion. With the consensus EPS estimate being $0.55, the EPS surprise was +5.45%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

Hewlett Packard Enterprise (HPE) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.45%. A quarter ago, it was expected that this information technology products and services provider would post earnings of $0.46 per share when it actually produced earnings of $0.50, delivering a surpr ...

Revenue Performance - Q4 revenue reached $8.5 billion, a 15% increase from the prior-year period[4] - Annualized revenue run-rate (ARR) was $1.9 billion, up 49% year-over-year[4] - Net revenue for the three months ended October 31, 2024, was $8,458 million, a 9.6% increase from $7,710 million in the previous quarter[19] - For the year ended October 31, 2024, net revenue was $30,127 million, a 3.4% increase from $29,135 million in the previous year[21] - Total consolidated net revenue for the year ended October 31, 2024, reached $30,127 million, compared to $29,135 million in the prior year, reflecting an increase of 3.4%[35] - Total consolidated net revenue for the three months ended October 31, 2024, was $8,458 million, a 10% increase from $7,710 million in the previous quarter and a 15% increase year-over-year from $7,351 million[37] Earnings and Profitability - GAAP diluted net EPS was $0.99, up 102% from the prior-year period, exceeding guidance[5] - Net earnings attributable to common stockholders for the quarter were $1,341 million, compared to $512 million in the previous quarter, representing a significant increase of 161.4%[19] - Basic earnings per share for the quarter were $1.02, up from $0.39 in the previous quarter, indicating a 161.5% increase[19] - Net earnings attributable to Hewlett Packard Enterprise (HPE) for the year ended October 31, 2024, increased to $2,579 million, up from $2,025 million in the previous year, representing a growth of 27.3%[31] - GAAP net earnings attributable to HPE for the three months ended October 31, 2024, were $1,366 million, compared to $642 million for the same period in 2023, representing a 113% increase[27] - Non-GAAP net earnings attributable to common stockholders for the three months ended October 31, 2024, were $770 million, up from $680 million in the same period last year, reflecting a 13.24% increase[27] Cash Flow and Dividends - Free cash flow (FCF) was $1.5 billion, a decrease of $821 million from the prior-year period[5] - Free cash flow for the three months ended October 31, 2024, was $1,500 million, compared to $669 million for the previous quarter, indicating a significant increase[29] - Cash dividends declared per share for the quarter were $0.52, compared to $0.48 in the previous year[21] - The Board declared a cash dividend of $0.13 per share, payable on January 16, 2025[7] Segment Performance - Server revenue was $4.7 billion, up 32% year-over-year, with an operating profit margin of 11.6%[6] - Hybrid Cloud revenue was $1.6 billion, up 18% year-over-year, with a 7.7% operating profit margin[6] - Intelligent Edge revenue was $1.1 billion, down 20% year-over-year, with a 24.4% operating profit margin[6] - The Server segment generated $16,205 million in revenue for the year ended October 31, 2024, compared to $14,361 million in the previous year, marking a growth of 12.9%[35] - The Hybrid Cloud segment reported revenue of $5,386 million for the year ended October 31, 2024, slightly down from $5,493 million, indicating a decrease of 2.0%[35] - The Intelligent Edge segment reported revenue of $4,532 million for the year ended October 31, 2024, down from $5,379 million, reflecting a decrease of 15.7%[35] Assets and Liabilities - Total current assets as of October 31, 2024, were $33,457 million, up from $18,948 million as of October 31, 2023, showing an increase of 76.73%[30] - Total assets increased to $71,262 million as of October 31, 2024, from $57,153 million a year earlier, marking a growth of 24.7%[30] - Long-term debt as of October 31, 2024, was $13,504 million, compared to $7,487 million as of October 31, 2023, reflecting an increase of 80.5%[30] - Cash and cash equivalents increased to $14,846 million as of October 31, 2024, from $4,270 million a year earlier, representing a growth of 248.5%[30] Strategic Initiatives and Future Outlook - HPE expects revenue growth in the mid-teens percentage for Q1 FY 2025[8] - The acquisition of Juniper Networks is expected to close in early 2025, pending regulatory review[9] - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[28] - Transformation costs related to the HPE Next Plan and Cost Optimization and Prioritization Plan are expected to decline significantly beyond fiscal 2024[50] Non-GAAP Measures and Financial Adjustments - Hewlett Packard Enterprise's non-GAAP net earnings for the quarter were significantly impacted by charges related to stock-based compensation, disaster recovery, and divestiture-related exit costs[48] - The company reported a projected non-GAAP income tax rate of 15% for fiscal 2024, up from 14% in fiscal 2023, reflecting changes in its tax structure and geographic earnings mix[51] - Non-GAAP gross profit margin excludes stock-based compensation and other specific charges, providing a clearer view of operational performance[49] - Non-GAAP operating profit margin excludes amortization of intangible assets and other specific charges, reflecting ongoing operational results more accurately[49] - The company emphasizes the importance of non-GAAP measures for providing transparency and facilitating comparisons with industry peers[47]

Core Viewpoint - Hewlett Packard Enterprise (HPE) has shown a solid total return of 25% in 2024, driven by its focus on enterprise data and IT infrastructure solutions, particularly in the growing AI market [3]. Financial Performance - HPE's total revenues have stagnated over the past two years, with Q3 2024 revenues slightly down from Q1 2023 [5]. - The server business has experienced significant growth, with revenue growth of 18% in Q2 and 35% in Q3 [5]. - AI-related products and services generated $1.3 billion in revenue in Q3, over three times the amount from Q1, with a strong AI systems backlog of $3.4 billion [6]. Product and Service Development - HPE GreenLake, a hybrid cloud solution, has seen a 37% increase in customer adoption since Q3 2023 [8]. - The platform allows customers to choose services, shifting from a hardware sales model to a "pay-as-you-go" model, with 71% of its annualized revenue now coming from software and services [9]. - The introduction of HPE Private Cloud AI, co-developed with NVIDIA, is generating strong interest for developing generative AI applications [11]. Strategic Moves - HPE's acquisition of Juniper Networks aims to enhance networking infrastructure for AI workloads and hybrid cloud performance, potentially boosting competitive edge [12]. - Concerns exist regarding a possible challenge from the Department of Justice (DOJ) that could delay the acquisition, which could impact market sentiment [13]. Analyst Sentiment - Analysts at Raymond James have a Strong Buy rating on HPE with a price target of $29, indicating a potential 40% upside from the current price [4]. - Despite a current "Hold" rating among analysts, there is optimism regarding HPE's future performance if strategic moves, such as the Juniper acquisition, proceed successfully [16].

Wall Street analysts forecast that Hewlett Packard Enterprise (HPE) will report quarterly earnings of $0.55 per share in its upcoming release, pointing to a year-over-year increase of 5.8%. It is anticipated that revenues will amount to $8.23 billion, exhibiting an increase of 12% compared to the year-ago quarter. The current level reflects a downward revision of 1.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively ...

Key TakeawaysHewlett Packard Enterprise (HPE) will report earnings results after the market closes Thursday.The majority of analysts who research HPE and are tracked by Visible Alpha have a "hold" rating for the company.Bank of America raised its price target for HPE based in part on optimism for the overall artificial intelligence server market. Hewlett Packard Enterprise (HPE) will report fiscal fourth-quarter earnings after the market closes Thursday, with analysts softly bullish overall ahead of the com ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Hewlett Packard Enterprise (HPE) driven by higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The earnings report is expected on December 5, 2024, with a consensus EPS estimate of $0.55, reflecting a +5.8% change year-over-year [3][4]. - Revenues are projected to reach $8.23 billion, marking a 12% increase from the previous year [4]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.41% over the last 30 days, indicating a reassessment by analysts [5]. - The Most Accurate Estimate for HPE is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.51% [11][12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. - HPE currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [13]. Historical Performance - HPE has consistently beaten consensus EPS estimates, achieving this in the last four quarters [15]. - In the last reported quarter, HPE exceeded expectations by delivering earnings of $0.50 per share against an expected $0.46, resulting in a surprise of +8.70% [14]. Conclusion - HPE is positioned as a compelling candidate for an earnings beat, but other factors should also be considered before making investment decisions [18].