Dell's Recovery and HPE's Neutral Stance: A Comprehensive Look Ahead Of Earnings Release
Portfolio Pulse from Anusuya Lahiri
Dell Technologies Inc (DELL) and Hewlett Packard Enterprise Co (HPE) are set to report earnings on August 31 and August 29 respectively. Citi analyst Asiya Merchant maintains a Buy rating on Dell and a Neutral view on HPE. Dell's revenues and earnings are expected to decline, but recovery is anticipated due to demand for PCs. HPE's revenue declines are expected to be more modest, with its networking segment expected to outperform.
August 22, 2023 | 8:51 pm
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NEUTRAL IMPACT
Dell's revenues and earnings are expected to decline, but recovery is anticipated due to demand for PCs. The potential for inclusion in the S&P 500 index represents an incremental catalyst.
The expected decline in revenues and earnings could negatively impact Dell's stock price. However, the anticipated recovery due to PC demand and potential inclusion in the S&P 500 index could offset this impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
HPE's revenue declines are expected to be more modest, with its networking segment expected to outperform. The departure of CFO Tarek Robbiati reaffirms 3Q and FY23 guidance.
The expected modest revenue declines and the outperformance of the networking segment could balance each other out, leading to a neutral impact on HPE's stock price. The reaffirmation of guidance despite the CFO's departure could also provide stability.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100