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HPE's Financial Surge Led By AI Demand Despite Margin Pressures, Analysts Optimistic About Future Growth

Hewlett Packard Enterprise Company (NYSE:HPE) shares are trading higher following better-than-expected Q2 financial results. Yesterday, Hewlett Packard Enterprise reported quarterly earnings of 42 cents per share, which beat the analyst consensus estimate of 39 cents by 7.69%. The company sees third-quarter EPS of $0.43 and $0.48, versus the $0.47 estimate, and revenue of $7.4 billion to $7.8 billion, versus the $7.46 billion estimate. The company sees full-year EPS of $1.85 and $1.95 versus the $1.88 estimate. Goldman Sachs analyst Michael Ng writes that Storage margins showed weakness, particularly in Hybrid Cloud margins, driven by the transition to an as-a-service model, and the company anticipates improvements in storage margins over the year. Despite Intelligent Edge continuing to be weak, it is expected to experience sequential revenue growth ...