Hewlett Packard Enterprise rose about 14% in premarket trading after the company forecast third-quarter revenue above Wall Street estimates, helped by growing demand for its AI-optimized servers.
Hewlett Packard Enterprise (HPE) shares surged more than 14% in pre-market trading Wednesday after the server and storage manufacturer topped Wall Street's quarterly estimates and boosted its full-year guidance amid growing demand for artificial intelligence (AI) servers.
A raft of companies are rising after their quarterly earnings beat expectations.
Hewlett Packard Enterprise forecast third-quarter revenue above Wall Street expectations on Tuesday, helped by upbeat demand for its artificial intelligence servers, sending its shares up 11% in extended trading.
HP Enterprise reported revenue of $7.2 billion, up 3% from a year earlier, ahead of the company's guidance range of $6.6 billion to $7 billion.
Enterprise AI stocks tend to represent companies that focus on solving complex business problems by leveraging powerful algorithms. Consumer AI, on the other hand, tends to be less complex and deals primarily with user interface and experience overall.
Enterprise has been one of the most consistent midstream companies over the years. It has a high yield and growing distribution.
Enterprise Products Partners oversees over 50,000 miles of pipelines to transport oil, gas, and liquefied natural gas. The partnership has increased its annual distribution to shareholders for 25 consecutive years.
Enterprise Products Partners is a major player in the energy transportation and storage market, with a vast network of pipelines and storage facilities. The company reported strong financial performance in the first quarter of 2024, with revenue increasing by 18.6% year-over-year. Enterprise Products Partners has low leverage and offers a high yield, making it an attractive investment for those seeking stability and cash flow.
Enterprise Financial Services' net interest income decreased in the first quarter due to increased non-interest expenses and a minor contraction in net interest margins. The bank's loan book is mainly focused on commercial and industrial loans and commercial real estate. The preferred shares of Enterprise Financial offer a 6.5% dividend yield and remain an interesting investment option.
I'm looking to further concentrate my portfolio in 2024 and Enterprise Products Partners is among my top candidates for additional investment. EPD's adjusted EBITDA and operational DCF grew in the first quarter. The midstream operator's leverage ratio was just 3 in the trailing twelve months ended March 31.