Hewlett Packard Enterprise -6% on Q4 beats, downside guidance, CEO change

Cesar Mills
November 22, 2017

Hewlett Packard Enterprise Company (NYSE:HPE) issued an update on its first quarter earnings guidance on Tuesday morning. With the last stock price close up 1.92% from the two hundred day average, compared with the S&P 500 Index which has increased 0.01% over the date range.

HPE's stock fell as much as 8% in after hours trading Tuesday following the news. By maintaining an average market P/E ratio of 20-25 times the earnings, the company asserts that they are certainly not losing money. The company P/S (price to Sales) ratio is 0.63, P/B (price to Book) ratio is 0.77, while its P/C (price to Cash) ratio stands at 2.03.

Raymond Tuchman, CEO of Experis Technology Group, a Potomac, Md., HPE partner, said Whitman did a great job for partners and customers, but the time is right for Neri to become CEO.

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Tigress Financial started coverage on shares of Hewlett Packard Enterprise Co (NYSE:HPE) in a report released on Monday, April 17th. The company had revenue of $11.41 billion for the quarter, compared to analyst estimates of $12.09 billion.

Whereas its latest closing price kept its distance from the SMA20 at -0.57% and -2.83% from SMA 50 while it was knocked up -0.84% from the simple moving average price of 200 days.

HPE reported net income of $524 million, or 32 cents per share, for the fourth quarter ended October 31, compared with $302 million, or 18 cents per share, a year earlier. The ex-dividend date is Monday, June 12th. Mitsubishi UFJ Trust & Banking Corp boosted its stake in Hewlett Packard Enterprise by 0.7% in the third quarter. Hewlett Packard Enterprise's dividend payout ratio is 144.44%. The company has also undertaken a number of strategic acquisitions under Whitman's watch, including Aruba, SGI, SimpliVity and Nimble Storage. The firm owned 6,467,222 shares of the company's stock after buying an additional 1,193,723 shares during the period. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued. The most recent bid on the stock was registered at $13.29. Zacks Investment Research lowered shares of Hewlett Packard Enterprise from a buy rating to a hold rating in a report on Wednesday, November 15th. They set a market perform rating and a $15.00 price target for the company. KeyCorp restated a hold rating on shares of Hewlett Packard Enterprise in a report on Friday, October 20th. Analysts set a 12-month price target of $85.68 a share. Two investment analysts have rated the stock with a sell rating, twenty-two have issued a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. The company has an average rating of Hold and a consensus target price of $17.49. In related news, SVP Jeff T. Ricci sold 31,695 shares of the firm's stock in a transaction dated Monday, April 24th. Narrowing in further, the stock has been recently noted at -7.84% away from the 30 day high and +9.20% separated from the 30 day low. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Whitman has also served as a VP at Disney, and was the CEO of eBay prior to joining HP. The stock was sold at an average price of $13.67, for a total value of $3,404,144.41. The disclosure for this sale can be found here. Insiders sold 2,920,273 shares of company stock worth $41,288,784 over the last three months. The insider, KARROS KIRT P, now holds 0 shares of HPE. If you are viewing this report on another website, it was illegally copied and republished in violation of U.S. and global copyright & trademark laws. If you are reading this article on another publication, it was illegally copied and reposted in violation of global copyright and trademark legislation. The company operates in four segments: Enterprise Services, Enterprise Group, Software and Financial Services.

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