Shares of Hewlett Packard Enterprise (HPE) fell in after-hours trading after the tech company reported earnings for its third quarter of Fiscal Year 2024. Earnings per share came in at $0.50, which beat analysts’ consensus estimate of $0.47 per share.
Sales increased by 10.1% year-over-year, with revenue hitting $7.71 billion. This also beat analysts’ expectations of $7.67 billion.
Looking forward, management now expects revenue growth and adjusted earnings per share for FY 2024 to be in the ranges of 1% to 3% and $1.92 and $1.97, respectively. For reference, analysts were expecting 1.9% in revenue growth along with an adjusted EPS of $1.92.
Insider Activity
When looking at insider activity, there seems to be a lot of selling. In fact, insiders have sold $10.2 million worth of shares in the past three months. As a result, confidence from within appears to be low, as the Insider Confidence Signal for HPE stock is Very Negative and is below the sector average, as shown in the picture below:
Is HPE Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on HPE stock based on two Buys, eight Holds, and zero Sells assigned in the past three months. After an 8% rally in its share price over the past year, the average HPE price target of $20.78 per share implies 11.3% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
