Core Viewpoint - Analysts expect Hewlett Packard Enterprise (HPE) to report quarterly earnings of $0.34 per share, reflecting a year-over-year decline of 19.1%, with revenues projected at $7.47 billion, an increase of 3.7% from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised upward by 0.7% in the last 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts predict 'Revenue- Financial Services' will reach $873.87 million, a year-over-year increase of 0.8% [5] - 'Revenue- Corporate Investments and other' is estimated at $208.01 million, indicating a decline of 17.5% from the prior year [5] - 'Revenue- Intelligent Edge' is expected to be $1.15 billion, reflecting a 6% increase from the previous year [5] - 'Revenue- Americas' is projected at $3.22 billion, a 2.5% increase year-over-year [6] - 'Revenue- Asia Pacific and Japan' is expected to be $1.52 billion, showing a decline of 5.4% [6] - 'Revenue- Europe, Middle East and Africa' is estimated at $2.59 billion, indicating a 5.7% increase year-over-year [6] Earnings from Operations - 'Earnings from Operations- Financial Services' is estimated at $74.64 million, down from $81 million in the same quarter last year [7] - 'Earnings from Operations- Intelligent Edge' is projected at $287.63 million, up from $237 million in the same quarter last year [7] Stock Performance - HPE shares have increased by 9.1% over the past month, outperforming the Zacks S&P 500 composite, which rose by 6.7% [8] - HPE holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [8]

Group 1 - Hewlett Packard Enterprise Company (HPE) is set to report its second quarter earnings on June 3rd, with significant topics to discuss including delays in its $14 billion Juniper acquisition and trade pressures [1] - The involvement of activist investors is also a key point of interest for HPE as it prepares for its earnings report [1] Group 2 - The company has a focus on sectors such as AI, fintech, finance, and tech, indicating its strategic interests and potential growth areas [1] - HPE's earnings performance and competitive positioning are critical aspects that will be analyzed in the upcoming report [1]

Investment Rating - The industry investment rating is "In-Line" [4] Core Insights - Most companies in the Greater China Technology Hardware sector report no negative impact from tariffs on their operations, with several companies expressing confidence in achieving their growth targets [6][4] - The demand for servers is expected to remain strong in the domestic market, contributing positively to revenue growth [6] Company Summaries - **AAC Technologies Holdings**: The company is optimistic about achieving its full-year growth target, driven by thermal solutions and new optical breakthroughs, with expectations of continuous improvement in gross margins [1] - **BYD Electronics**: Experienced a revenue decline in its high-margin component business but is seeing strong growth in its new EV business and anticipates rapid growth in the server business due to strong domestic demand [2] - **Transsion**: The first quarter is typically a slow season for smartphone shipments, but the company expects a margin recovery, with its IoT business growing faster than smartphones, particularly due to energy storage demand in Africa [3] Stock Ratings Overview - **AAC Technologies Holdings (2018.HK)**: Overweight [57] - **BYD Electronics (0285.HK)**: Overweight [57] - **Transsion Holdings (688036.SS)**: Overweight [57] - **Sunny Optical (2382.HK)**: Equal-weight [57] - **Xiaomi Corp (1810.HK)**: Overweight [57]

Group 1: Overview of Share Buyback Programs - Several influential companies in the technology and financial sectors have announced massive share repurchase programs totaling over $130 billion, indicating confidence in their equity despite mixed macroeconomic signals [1][3] - Visa announced a $30 billion buyback program, a significant increase from its previous $25 billion plan, reflecting strong confidence in long-term growth [4][5] - Apple revealed a $100 billion buyback authorization, one of the largest in history, but some investors were underwhelmed as it was $10 billion smaller than its previous program [8][9] Group 2: Visa's Buyback Details - Visa's new buyback program brings its total repurchase capacity to nearly $35 billion, equating to about 5.2% of its market capitalization, which is aggressive for a company of its size [7] - The buyback reflects strong cash generation and a belief that shares are attractively priced in the current environment [7] Group 3: Apple's Buyback Insights - Apple's $100 billion buyback represents 3.1% of its market capitalization, lower than the 4.1% from its previous $110 billion program [11] - Despite the disappointment, historical data shows that a smaller buyback does not preclude strong stock performance, as seen in 2019 [12][13] - Apple also announced a moderate 4% increase to its quarterly dividend alongside the buyback [14] Group 4: Arista Networks' Buyback Activity - Arista Networks announced a $1.5 billion share buyback program, with an additional $34 million from its previous authorization, totaling around 1.4% of its market capitalization [15] - The company spent $887 million on buybacks from the beginning of 2025 through April, indicating management's belief that its stock is significantly undervalued [16][17]

May 9, 2025 01:20 PM GMT BOE Technology | Asia Pacific | M | | | | --- | --- | --- | | | | Update | | May 9, 2025 01:20 PM GMT | | | | BOE Technology Asia Pacific | Morgan Stanley Taiwan Limited+ | | | | Derrick Yang Equity Analyst | | | China BEST Conference 2025 | Derrick.Yang@morganstanley.com | +886 2 2730-2862 | | | Vivi Huang | | | | Research Associate | | | Feedback | Vivi.Huang@morganstanley.com | +886 2 2730-2860 | | | Sharon Shih | | | | Equity Analyst | | | | Sharon.Shih@morganstanley.com | +886 ...

1Q25 preliminary net income up 24-27% YoY; 4% higher than MSe Reaction to earnings April 8, 2025 09:38 AM GMT Foxconn Industrial Internet Co. Ltd. | Asia Pacific Unchanged Modest upside Largely unchanged Impact to our thesis Financial results versus consensus Direction of next 12-month consensus EPS Source: Company data, Morgan Stanley Research FII announced preliminary 1Q25 revenue of Rmb159-161bn (+34-35.6% YoY) and net income of Rmb5.2-5.3bn (+24.4-26.8% YoY). Cloud equipment revenue grew >50% YoY in 1Q2 ...

Group 1: Market Reaction - The U.S. stock market experienced a significant decline following the announcement of the "reciprocal tariffs" by President Trump, with all three major indices hitting their largest single-day drops in five years [2][4] - The Dow Index fell by 1,679.39 points, a decrease of 3.98%, marking its largest single-day drop since June 2020 [3][4] - The S&P 500 Index dropped by 1,050.44 points, down 4.84%, also the largest single-day decline since June 2020 [3][4] - The NASDAQ Index saw a decline of 5.97%, the largest drop since March 2020 [3][4] - Approximately $3.1 trillion in market value was wiped out in a single day, the largest loss since March 2020 [5] Group 2: Individual Stock Performance - Major companies faced severe stock price declines, with Apple Inc. down 9.25%, Meta Platforms Inc. down 8.96%, and Nike Inc. down 14.44% [6] - NVIDIA Corp. saw a decrease of 7.81%, while Tesla Inc. dropped by 5.47% [6] Group 3: Commodity Market Impact - Oil prices fell sharply, with WTI crude oil futures dropping over 7%, reaching their lowest level in three years [7] - Gold prices also experienced a decline, with COMEX gold down 0.89% on April 3, although it later recovered slightly [10] - Silver prices saw a significant drop of 7.86% on the same day [10] Group 4: European Market Response - European stock markets reacted negatively, with the FTSE 100 Index down over 1.5%, the CAC Index down over 3.3%, and the DAX Index down over 3% [10] - The European Union plans to implement countermeasures against the U.S. tariffs, with a vote scheduled for April 9 regarding a 25% tariff on steel and aluminum [12]