Hewlett Packard Enterprise (HPE) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

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 - HPE is expected to report earnings of $0.59 per share, reflecting a +1.7% change year-over-year, with revenues projected at $9.96 billion, an increase of 17.8% from the previous year [3] - The earnings report is scheduled for December 4, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2] Estimate Revisions - The consensus EPS estimate has been revised down by 5.21% over the last 30 days, indicating a bearish sentiment among analysts regarding HPE's earnings prospects [4][12] - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.17%, which complicates predictions of an earnings beat [12] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [10] - HPE currently holds a Zacks Rank of 5, indicating a challenging outlook for beating consensus EPS estimates [12] Historical Performance - In the last reported quarter, HPE exceeded earnings expectations with a surprise of +2.33%, having beaten consensus EPS estimates three times over the last four quarters [13][14] Conclusion - HPE does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered when evaluating the stock ahead of its earnings release [17]