Report
Valens Research

HPE - Embedded Expectations Analysis - 2018 07 18

Hewlett Packard Enterprise Company (HPE:USA) currently trades in the middle of valuations relative to UAFRS-based (Uniform) Earnings, with a 15.0x Uniform P/E. At these levels, the market is bearish, pricing in expectations for the firm to see profitability fall, and remain at those levels. Management is confident about EPS and share buybacks, but is concerned about products and cost savings.

Specifically, management was is confident about boosting their 2018 EPS estimates, and in their share buyback plans. However, they may be concerned about meeting their target to deliver $250mn in net savings this year, and may lack confidence in their introduction of NetInsight. In addition, they may have concerns about their transparency regarding the effects of the new tax plan on operational performance. Finally, they may lack confidence about their cloud orchestration capabilities
Underlying
Hewlett Packard Enterprise Co.

Hewlett Packard Enterprise is a technology company. The company's segments are: Hybrid IT, which provides a portfolio of infrastructure and solutions including servers, storage, and HPE Pointnext services; Intelligent Edge, which is comprised of cloud solutions that include wireless local area network, campus and data center switching, software-defined wide-area-networking, security, and associated services to enable secure connectivity; Financial Services, which provides investment solutions for customers that facilitate technology deployment models; and Corporate Investments, which includes Communications and Media Solutions, Hewlett Packard Labs and certain business incubation projects.

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Valens Research
Valens Research

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