HPE shares slide as investors eye AI demand
HPE•Analysts expect strong revenue growth
Analysts expect HPE quarterly revenue to rise 30% to $11.91 billion and adjusted EPS of $0.93 versus $0.44 a year ago, according to LSEG data.
In the prior quarter, HPE beat estimates and raised its full-year outlook, citing strong demand in its networking and AI segments.
The stock has jumped about 109% year to date, versus a 12% rise for the S&P 500 .SPX.
It recently traded at 13 times forward earnings, versus its five-year average of 9 times, LSEG data showed.
Shares fall ahead of results as focus turns to AI servers
Hewlett Packard Enterprise HPE.N shares were falling 1.3% on Wednesday ahead of quarterly results after the bell, with focus on demand for its AI-optimized servers.
Rival Dell DELL.N shares were up 7% after it late on Tuesday raised its revenue and profit forecasts, helped by demand for its AI servers.
