Hewlett Packard Enterprise (HPE) stock plummeted Friday after analysts updated coverage of HPE stock following the company’s latest earnings report. That report included earnings per share of 49 cents, which missed Wall Street’s estimate of 50 cents. However, the company’s revenue of $7.85 billion beat analysts’ estimate of $7.81 billion.
The mixed earnings results didn’t please HPE stockholders and analysts, but they weren’t the only negatives in that report. The company’s posted Fiscal Q2 2025 Guidance of 28 cents to 34 cents per share alongside revenue of $7.2 billion to $7.6 billion. These would both miss Wall Street’s estimates of 42 cents and $7.78 billion.
Speaking during an earnings conference call, Hewlett Packard Enterprise Chief Financial Officer Marie Myers addressed the outlook. She noted that “tariff announcements have created uncertainty for our industry, primarily affecting our server business,” and that the company is “working on plans to mitigate these impacts through supply chain measures and pricing actions.”
Analysts Hit HPE Stock with Price Target Cuts
Following the mixed results and lackluster guidance, four analysts hit HPE stock with price target cuts. Starting with the five-star analysts, Wells Fargo’s Aaron Rakers dropped the stock from $22 to $17, Bank of America Securities’ Wamsi Mohan reduced it from $26 to $20, and Susquehanna’s Mehdi Hosseini decreased the firm’s price target from $20 to $15. Four-star Morgan Stanley analyst Meta Marshall also lowered the stock from $28 to $24.
The Hewlett Packard Enterprise earnings report and analyst updates hammered HPE stock. The shares are down 17.87% in pre-market trading after falling 4.92% yesterday. The stock has also dropped 15.88% year-to-date but was up 2.51% over the last year as of yesterday’s close.
Is HPE Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus estimate for Hewlett Packard Enterprise is Moderate Buy based on five Buy and four Hold ratings over the last three months. With that comes an average price target of $24, representing a potential 33.63% upside. More rating and price target changes may follow the release of its latest earnings report.
