HPE
📉 HPE’s stock price is down 20% due to weak earnings guidance affected by tariffs.
🚫 The company plans to eliminate approximately 3,000 jobs.
⚠️ Weaker margins in server sales and execution issues are impacting profitability.
🤔 Despite challenges, HPE could be an interesting opportunity for investors with deep knowledge of the company.
@bernardodegarcia:
“HPE’s stock is plummeting around 20% after the company indicated that next year’s earnings will be affected by tariffs, weak margins in server sales, and execution problems. The company also announced it would eliminate about 3,000 jobs. HPE anticipates earnings, excluding certain items, to be between $1.7 and $1.9 per share for the fiscal year ending in October 2025. The lower profitability is largely due to issues within HPE’s server unit. Discounts during sales, higher realized costs, and the accumulation of older generation semiconductors are impacting earnings in the coming quarters. While tariffs could also affect profitability prospects, this situation might present a good opportunity for those with a deep understanding of HPE.”
Watch the exact part of the video where Bernardo talks about HPE here:
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Read more articles by the world’s top 100 analysts on Hewlett Packard Enterprise (HPE) at the following link. HPE stock.
