Hewlett Packard Enterprise (HPE): Raising PT Despite Weak Quarter - Jefferies
- Wall Street falls with financials, other post-election gainers
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- United Airlines (UAL) Tops Q4 EPS by 5c
- Obama shortens sentence of Manning, who gave secrets to WikiLeaks
- After-Hours Stock Movers 01/17: (SHLO) Higher; (GIMO) (AFAM) (CSX) Lower (more...)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Jefferies analyst, James Kisner, reiterated his Buy rating on shares of HP Enterprise (NYSE: HPE) after the company reported a messy Q3 with light revenue and a low-quality EPS beat. Q4 EPS guidance was in-line. As anticipated in press reports, HPE announced it intends to spin out most of the Software business to a new entity combined with UK-based Micro Focus.
The revenue shortfall was chiefly driven by Enterprise Group ($6.48B, Street = $6.85B), Software ($731M, Street = $811M), and Enterprise Services ($4.73B, Street = $4.80B). Within Enterprise Group, Networking (+12% Y/Y organically, c.c.) remained strong while Storage was notably weak (-5% c.c.). Servers declined (-2% c.c.). but EBIT ended up OK at $1.08B (Street = $1.06B) on better than expected gross margins (29.3%, Street = 28.8%) and lower than-expected opex ($2.49B, Street = $2.60B).
The analyst stated "We continue to believe HPE shares offer a compelling valuation and will continue to rise as investors become more comfortable with HPE's revenue and free cash flow outlook". The price target increases to $27.00 (from $24.25.
Shares of HP Enterprise closed at $22.09 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: JPMorgan Downgrades OneMain (OMF) to Neutral
- Mizuho Securities Raises Price Target on Noble Energy (NBL) to $48; Reiterates Buy
- Seaport Global Securities Upgrades Noble Energy (NBL) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!