Hewlett Packard Enterprise Company HPE is expected to release earnings results for its third quarter, after the closing bell on Wednesday, Sept. 4.
Hewlett Packard Enterprise (HPE) reports fiscal third-quarter earnings after the closing bell Wednesday, with analysts expecting the server and storage maker to post year-over-year increases in revenue and profit as demand for its products to power artificial intelligence (AI) products boosts sales.
AXON benefits from strength across its businesses, product introductions and complementary acquisitions. Rising costs and expenses may hurt its profitability.
HPE remains a buy due to strong investments in cloud computing and AI, despite recent price increases and the cost of an upcoming acquisition of Juniper Networks. The company's balance sheet is stable with strong margins, but cash on hand may weaken due to the $14 billion Juniper Networks acquisition. HPE's forward P/E ratio of 9.18 suggests potential undervaluation, making it a valuable investment in the enterprise computing sector.
HPE's Q3 performance is likely to have benefited from the growing demand for AI servers and the increasing adoption of the Aruba Edge Services Platform and GreenLake.
HPE is poised for growth in AI infrastructure and general compute servers as enterprises increase their investment in CPU + GPU. I'm forecasting eq3'24 revenue at $7.9b and EPS at $0.52/share, driven by strong sequential growth in CPU/GPU servers and networking equipment. Valued lower than peers, HPE is positioned as a value play in the server space, with significant growth opportunities in private, public, and hybrid cloud environments.
Perion Network is very undervalued, trading near its net cash level of $400 million, offering significant upside in a business turnaround. Despite recent operational challenges and -70% share selloff, the company runs several units growing at a fast clip. Technical trading indicators suggest a potential price bounce, with targets between $12 and $22 if sales stabilize and cash levels increase.
EPD's long-term outlook looks promising backed by stable fee-based cash flows and attractive distribution yields.
Enterprise Products Partners is a large midstream enterprise with growing EBITDA and distributable cash flow, supported by a strong distribution coverage ratio. EPD is expanding its footprint in the Delaware basin and experiencing solid growth in its NGL and natural gas pipeline business. The midstream firm just announced another acquisition for $950M, which will make a positive contribution to its NGL segment.
Enterprise Products Partners LP (EPD) is the latest midstream company to strike a deal that will expand its natural gas gathering and processing footprint in the Permian. Enterprise will acquire Pinon Midstream in a $950 million deal expected to close in the fourth quarter of 2024.
Enterprise Products Partners is a cash cow in the midstream/pipeline space, with steady cash flows and low trading multiples. The company saw strong revenue and profit growth in the most recent quarter, with improvements in sales volumes and prices. Enterprise Products Partners has low leverage, attractive pricing, and a history of returning capital to shareholders, making it a solid 'buy'.
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