Why Hewlett Packard Enterprise Shares Are Down Premarket Friday
Portfolio Pulse from Lekha Gupta
Hewlett Packard Enterprise (HPE) shares dropped in premarket trading after reporting a 14% Y/Y decline in Q1 FY24 revenue to $6.76 billion, missing estimates. Despite a 42% Y/Y increase in ARR and a 200 basis point expansion in adjusted gross margin, the company's outlook for Q2 and FY24 fell short of consensus expectations, with projected revenue and adjusted EPS below analyst estimates. HPE also reported a negative free cash flow of $(482) million for the quarter.
March 01, 2024 | 11:16 am
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NEGATIVE IMPACT
HPE's premarket share price fell after reporting lower-than-expected Q1 FY24 revenue and a disappointing outlook for Q2 and FY24. The company also reported a significant negative free cash flow.
The decline in HPE's share price is directly related to its Q1 FY24 performance and future outlook, which fell short of market expectations. The negative free cash flow further exacerbates concerns about the company's financial health in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100