DeFi Daily News
Tuesday, July 1, 2025
Advertisement
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
No Result
View All Result
Home Markets Stock Market

Key insights from Hewlett Packard’s (HPE) latest earnings report in Q3 2024 | AlphaStreet

Staff Correspondent by Staff Correspondent
September 5, 2024
in Stock Market
0 0
0
Key insights from Hewlett Packard’s (HPE) latest earnings report in Q3 2024 | AlphaStreet
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Telegram
Listen to this article

Hewlett Packard Enterprise (NYSE: HPE) has delivered stronger-than-expected third-quarter results amid significant conversion in AI system revenues. The prospects for the company’s AI server and edge computing businesses look promising though there is cost-related pressure on gross margin.

The Texas-based IT solutions provider’s stock dropped this week despite the positive results, reflecting the market’s concerns over the weak gross margin performance. HPE traded mostly sideways in the early half of the year, before climbing to a new high in June. Now, the shares are hovering near the levels seen a year ago. Considering the relatively low price and the bullish outlook on the industry, investors will be keeping a close watch on the stock.

Q3 Numbers

In the July quarter, the tech firm’s revenues increased to $7.7 billion from $7.0 billion in the prior-year period and topped expectations, aided by a 35% growth in the main Server segment that was partially offset by a 23% decrease in Intelligent Edge revenues. While demand was strong in North America, Asia-Pacific, Japan, and India, Europe and the Middle East experienced weakness.

Earnings, adjusted for special items, moved up to $0.50 per share in the third quarter from $0.49 per share a year earlier and came in above consensus estimates. On a reported basis, net income was $512 million or $0.38 per share in Q3, compared to $464 million or $0.35 per share in the third quarter of 2023.

Margin Woes

Meanwhile, gross margin dropped 410 basis points, hurt by a lower mix of Intelligent Edge revenue and a higher mix of AI server revenue. While margins are expected to remain under pressure in the coming quarters, they will rebound when there is a favorable shift in the revenue mix. Of late, the bottom line has been under pressure from higher component prices.

“We are aggressively going after the opportunities presented by better market conditions and are well-positioned in a competitive and dynamic environment as we close our fiscal year. I am very proud of the progress we have made in delivering on our edge-to-cloud vision over the last several years, which is generating this performance momentum. We have accelerated innovation across all pillars of our strategy. Networking, hybrid cloud, and AI delivered through a unified cloud-native and AI-driven experience as a part of our HPE GreenLake cloud platform,” Hewlett Packard’s CEO Antonio Neri said at the Q3 earnings call.

AI Prowess

While it is still in the early stages of AI adoption, Hewlett Packard recently launched HPE Private Cloud AI, developed in partnership with Nvidia. It is expected that innovations in this area will be a key growth driver for its hybrid cloud business. Encouraged by the positive performance so far this year and continued strong demand for AI systems, the company raised its full-year 2024 earnings per share guidance to the range of $1.68 to $1.73 and to the $1.92-$1.97 range, on an adjusted basis.

Extending the post-earnings downturn, Hewlett Packard’s stock traded lower soon after opening on Thursday. The current stock price is broadly in line with the 52-week average.

Conclusion:

In conclusion, Hewlett Packard Enterprise’s Q3 2024 earnings report showcased strong revenue growth driven by the AI system segment, despite challenges in gross margin performance. The company’s focus on AI server and edge computing businesses bodes well for its future growth prospects. However, the margin pressure from the revenue mix imbalance is a concern in the near term.

CEO Antonio Neri’s optimistic outlook on market opportunities and the company’s innovative edge-to-cloud vision demonstrate a strategic vision for sustained growth. The launch of HPE Private Cloud AI in partnership with Nvidia reflects Hewlett Packard’s commitment to driving advancements in hybrid cloud solutions.

Although the stock experienced a slight dip post-earnings, the overall outlook remains positive with the company raising its full-year earnings guidance. Investors are encouraged by the continued demand for AI systems and the potential for growth in the hybrid cloud business.

As Hewlett Packard continues to navigate the competitive IT solutions landscape, its ability to leverage AI technology and its strategic initiatives will be key drivers of success. Despite short-term challenges, the company’s long-term vision and product innovation position it well for future growth and profitability.

For more trending news articles like this, visit DeFi Daily News.



Source link

Tags: AlphaStreetEarningsHewlettHPEInsightsKeyLatestPackardsreport
ShareTweetShare
Previous Post

Weekly Mortgage Rates Remain Unchanged Amid Cooling Housing Market – NerdWallet

Next Post

Unemployment could spark 50bps cut and ‘panic move’ by Fed

Next Post
Unemployment could spark 50bps cut and ‘panic move’ by Fed

Unemployment could spark 50bps cut and 'panic move' by Fed

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
  • Trending
  • Comments
  • Latest
rewrite this title SEI Leads Crypto Market With 43% Weekly Surge – alt=

rewrite this title SEI Leads Crypto Market With 43% Weekly Surge – $0.5 Reclaim In The Horizon?

June 28, 2025
rewrite this title High Season, High Stakes: Navigating Summer Risks in Property Management

rewrite this title High Season, High Stakes: Navigating Summer Risks in Property Management

June 27, 2025
rewrite this title ‘FIFA Rivals’ Review: Should You Play This NFT Soccer Game? – Decrypt

rewrite this title ‘FIFA Rivals’ Review: Should You Play This NFT Soccer Game? – Decrypt

June 28, 2025
They’re Going ALL IN on Crypto: This is What Wall St is Buying!

They’re Going ALL IN on Crypto: This is What Wall St is Buying!

June 25, 2025
rewrite this title with good SEO Bitcoin Could Explode On Bessent’s 0 Billion Deregulation Shock

rewrite this title with good SEO Bitcoin Could Explode On Bessent’s $250 Billion Deregulation Shock

May 28, 2025
Crypto Analyst Reveals Six ‘Super-Cycle’ Tokens Set to Surge by 1000x in Value

Crypto Analyst Reveals Six ‘Super-Cycle’ Tokens Set to Surge by 1000x in Value

August 16, 2024
rewrite this title Deadspin | Agents: Dolphins deal with Giants for retired TE Darren Waller

rewrite this title Deadspin | Agents: Dolphins deal with Giants for retired TE Darren Waller

July 1, 2025
rewrite this title Coinbase Sags After Dual Blow of Supreme Court Decision, Ark Share Sale – Decrypt

rewrite this title Coinbase Sags After Dual Blow of Supreme Court Decision, Ark Share Sale – Decrypt

July 1, 2025
rewrite this title What is Solana (SOL)? How It Works, What It Does, and Why It’s So Fast

rewrite this title What is Solana (SOL)? How It Works, What It Does, and Why It’s So Fast

July 1, 2025
rewrite this title Bitget Wallet Partners With Mastercard And Immersve To Launch Zero-Fee Crypto Card

rewrite this title Bitget Wallet Partners With Mastercard And Immersve To Launch Zero-Fee Crypto Card

July 1, 2025
rewrite this title New York Man Accused of Converting .7M Into Bitcoin

rewrite this title New York Man Accused of Converting $1.7M Into Bitcoin

July 1, 2025
rewrite this title The best Prime Day robot vacuum deals for 2025

rewrite this title The best Prime Day robot vacuum deals for 2025

July 1, 2025
DeFi Daily

Stay updated with DeFi Daily, your trusted source for the latest news, insights, and analysis in finance and cryptocurrency. Explore breaking news, expert analysis, market data, and educational resources to navigate the world of decentralized finance.

  • About Us
  • Blogs
  • DeFi-IRA | Learn More.
  • Advertise with Us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.