What To Expect From HPE’s Fiscal Second Quarter Earnings
HP Enterprise (NYSE:HPE) is scheduled to announce its fiscal second quarter earnings on May 22. In recent quarters, the company has reported growth in its Hybrid IT product portfolio, with solid growth in compute and storage revenues. In addition, financial services revenues have also added to top line growth in recent quarters. The company continues to focus on enterprise hardware and customer services in order to bolster its revenues in the coming quarters.
We believe that this trend will continue in Q2 FY’18 as well, with combined compute and networking revenues of around $4 billion. HPE has enhanced its focus on core servers, which have higher average prices and margins, rather than the custom commoditized Tier -1 server market. The company also launched Edgeline Converged Systems that should help it to report higher margins in the coming quarters. We also expect HPE’s financial services revenues to be up 9% to $950 million. In addition, we forecast the company’s adjusted operating margin to expand 40 basis points to over 8% for the quarter. We have created an interactive dashboard that highlights our expectations for Q2’18. You can modify drivers such as segment revenues and margin figures to see how the company’s earnings would be affected in the quarter.
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