Hewlett Packard Enterprise (HPE) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Hewlett Packard Enterprise (HPE) reported revenue of $7.2 billion for the quarter ended April 2024, reflecting a year-over-year increase of 3.3% [1] - Earnings per share (EPS) for the quarter was $0.42, down from $0.52 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $6.81 billion by 5.72%, while the EPS surpassed the consensus estimate of $0.38 by 10.53% [1] Financial Performance Metrics - Revenue from Financial Services was $867 million, slightly below the estimated $872.26 million, marking a year-over-year increase of 1.1% [2] - Revenue from Corporate Investments and other segments was $252 million, exceeding the estimate of $240.27 million, but showing a significant decline of 14.9% year-over-year [2] - Hybrid Cloud revenue was reported at $1.26 billion, close to the estimated $1.27 billion [2] - Intelligent Edge revenue was $1.09 billion, slightly below the estimated $1.11 billion, representing a year-over-year decrease of 16.7% [2] - Server revenue reached $3.87 billion, surpassing the average estimate of $3.47 billion [2] - Earnings from Operations in Financial Services were $81 million, exceeding the estimate of $72.27 million [2] - Earnings from Operations in Intelligent Edge were $237 million, below the estimate of $254.06 million [2] - Corporate Investments and other segments reported a loss of $9 million, better than the estimated loss of $23.08 million [2] Stock Performance - HPE shares have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]